Taxpayer’s I.R.C. §401(k) plan account distribution is taxable and subject to the 10% additional tax imposed by §72(t)(1) because his diabetes did not render him “unable to engage in any substantial gainful activity” as he was able to work as a software engineer, the U.S. Tax Court held in a memorandum opinion, sustaining the IRS’s deficiency determination. [Lucas v. Commissioner, T.C. Memo 2023-9 (Jan. 17, 2023)]
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