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Petitioner admits that in 2001 she received wages of $5,924
from Famiano and distributions from Fidelity totaling $18,239
which she used to pay living expenses.
Section 72(t)(1) imposes a 10-percent additional tax on
early distributions from qualified retirement plans. Qualified
retirement plans include individual retirement accounts (IRAs) as
defined in section 408(a) and (b). Sec. 72(t)(1). There is no
dispute that petitioner’s Fidelity IRA was a “qualified
retirement plan” for purposes of section 72(t).
The 10-percent additional tax does not apply to certain
distributions from qualified retirement plans, including
distributions made after an employee attains age 59½. Sec.
72(t)(2)(A)(i). Petitioner was born in 1950. The distribution
from her IRA was made in 2001. Because petitioner had not
attained the age of 59½ in the year 2001, the exception found in
section 72(t)(2)(A)(i) does not apply.
Petitioner has not argued, and the record is devoid of any
evidence which would indicate, that petitioner is qualified for
any other exception to section 72(t)(1). For the foregoing
reasons, we hold that petitioner is liable for a 10-percent
additional tax on the early distribution from her Fidelity IRA.
Respondent determined that petitioner is liable for
additions to tax under section 6651(a)(1) for failure to file an
income tax return for 2001 and under section 6654(a) for failure
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Last modified: November 10, 2007