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a plan complying with changes made in the applicable law by the
Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), Pub. L.
97-248, 96 Stat. 324; the Deficit Reduction Act of 1984 (DEFRA),
Pub. L. 98-369, 98 Stat. 494; and the Retirement Equity Act of
1984 (REA), Pub. L. 98-397, 98 Stat. 1426.
The corporation contributed $29,152 to the plan 1 account of
Mr. Fazi and $3,950 to the plan 1 account of Mrs. Fazi for the
year ending August 31, 1986. Mr. Fazi was 100 percent vested in
his plan 1 account during the 1985 and 1986 plan years. Mrs.
Fazi was 60 percent vested in her plan 1 account in 1985 and 80
percent vested in 1986. Consequently, Mrs. Fazi's vested
interest in the 1986 contribution was $3,160. Mrs. Fazi's
increased vesting from 1985 to 1986 resulted in her becoming
vested in an additional $750 from contributions made to her
account in plan 1 for years prior to the plan year ending August
31, 1986.
Plan 2, when originally adopted by the corporation in 1972,
was qualified under section 401, and the accompanying trust was a
qualified, tax-exempt trust under section 501. Plan 2 was frozen
as of August 31, 1982, and was subsequently merged into plan 1 on
or about May 31, 1986. (This merger will hereinafter be referred
to as the plan merger.) The plan 2 assets were transferred to
the plan 1 trust. Mr. Fazi's account under plan 1 increased by
$277,138 as a result of the plan merger (the amount of his
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Last modified: May 25, 2011