Normally distributions from an IRA or qualified retirement plan are subject to a 10% penalty tax unless an exception applies. But I seem to recall that governmental plans aren't "qualified plans" - that is, they're not subject to IRS approval or scrutiny. So suppose a taxpayer received a separation payout from the California Teachers' Retirement System. None of the exceptions in the Form 5329 instructions apply. Is this distribution subject to the 10% penalty?
-- PT
>
>
>
>
>
>
>
>
>