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persons for health insurance premiums; and distributions from
certain plans for first home purchases. Sec. 72(t)(2)(A)(i),
(A)(v), (B), (D), (F). The purpose of the 10-percent additional
tax is to discourage premature distributions from IRAs that
frustrate the intention of saving for retirement. Dwyer v.
Commissioner, 106 T.C. 337, 340 (1996); see also S. Rept. 93-383,
at 134 (1973), 1974-3 C.B. (Supp.) 80, 213.
Petitioner was 53 years old when he received the
distribution from the retirement account. He used the funds for
living expenses after being terminated from his job. Petitioner
has not asserted, and we do not find, that any of the exceptions
under section 72(t)(2) apply to the early distribution from his
retirement plan.
Petitioner also makes several arguments why the 10-percent
additional tax should not apply to the early distribution, all of
which we find to lack merit. For example, petitioner asserts
that section 72(t) does not apply because the retirement account
is not a contract. We disagree. Section 72(t) applies to
qualified retirement plans. The parties do not dispute that the
retirement plan here is a qualified retirement plan. Sec.
401(a). Petitioner also argues that only the interest is taxable
and that the retirement plan itself, not petitioner, is liable
for the tax. Again, we disagree. The recipient of an early
distribution is liable for the 10-percent additional tax, not the
retirement plan. Sec. 72(t)(1). The additional tax is 10
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