Tax News

CCH (cch.taxgroup.com) reports:

  Distributions from a wife's individual retirement account (IRA) that satisfied the statutory exception for higher education expenses were not a modification of her election to receive a series of substantially equal periodic payments and did not trigger the recapture tax under Code Sec. 72(t)(4). Although the additional distributions for higher education expenses were made within five years of the first annual periodic payment and before the wife had attained age 59-1/2, they did not result in a change in the method of calculating the annual periodic payments. Thus, the five-year rule prohibiting modifications was not violated and the substantially equal periodic payment exception continued to apply.

G.T. Benz, 132 TC No. 15, Dec. 57,810

Other References:

 
Code Sec. 72

  CCH Reference - 2009FED ¶6140.775

  Tax Research Consultant

  CCH Reference - TRC RETIRE: 66,454
CCH Reference - TRC RETIRE: 66,454.05
CCH Reference - TRC RETIRE: 66,454.15