Benz v. Comm'r
United States Tax Court
In 2002 P-W elected to receive a series of substantially equal periodic payments from her individual retirement account (IRA) that qualified for a statutory exception to the 10-percent additional tax imposed on early distributions pursuant to sec. 72(t)(2)(A)(iv), I.R.C.Sec. 72(t)(4), I.R.C., provides that an employee who modifies a series of periodic payments within the first 5 years (other than by reason of the employee's death or disability) is liable for the 10-percent…
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In 2002 P-W elected to receive a series of substantially equal periodic payments from her individual retirement account (IRA) that qualified for a statutory exception to the 10-percent additional tax imposed on early distributions pursuant to sec. 72(t)(2)(A)(iv), I.R.C.Sec. 72(t)(4), I.R.C., provides that an employee who modifies a series of periodic payments within the first 5 years (other than by reason of the employee's death or disability) is liable for the 10-percent additional tax. In 2004 P-W received distributions from her IRA for higher education expenses pursuant to sec.…
1Opinion of the Court
OPINION
Goeke, Judge:
Respondent determined a Federal income tax deficiency of $8,959 for 2004. The deficiency results from the imposition of the 10-percent additional tax under section 72(t) on early distributions from an individual retirement account (ira).1 The sole issue for decision is whether a distribution for qualified higher education expenses is an impermissible modification of a series of substantially equal periodic payments. We hold that a distribution for qualified higher education expenses is not a modification of a series of substantially equal periodic payments.
Background
This…
2Cases cited2 opinions
- Dwyer v. CommissionerUnited States Tax Court · 1996
- Arnold v. CommissionerUnited States Tax Court · 1998
3Cited by2 opinions
- Benz v. Comm'rUnited States Tax Court · 2009
- Gregory T. and Kim D. Benz v. CommissionerUnited States Tax Court · 2009