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the balance of petitioner's separate account. Thus, petitioners
argue that, pursuant to section 414(k), petitioner's separate
account in the Annuity Savings Fund should be treated as a
defined contribution plan. Petitioners further argue that this
defined contribution component constituted a profit-sharing plan,
and that the Transfer Refund was paid from such profit-sharing
plan. Finally, petitioners argue that because profit-sharing
plans are not aggregated with pension plans under section
402(e)(4)(C), petitioner received the balance to her credit from
a profit-sharing plan when she received the Transfer Refund.
We have carefully considered petitioners' contention, and we
reject it for two reasons.
First, the Retirement System did not provide a benefit based
"partly on the balance of the separate account" of petitioner
under section 414(k). As discussed earlier, in order to satisfy
the "separate account" requirement in section 414(k),
petitioner's separate account must have maintained the
characteristics of a defined contribution plan; namely, the
allocation of investment gains and losses to petitioner's
separate account. Here, the Annuity Savings Fund held
petitioner's accumulated contributions. Pursuant to Maryland
law, petitioner's account in the Annuity Savings Fund was
credited with "regular interest" annually. Md. Ann. Code, art.
73B, sec. 14(2)(c) (1988). We do not think that the crediting of
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