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the 5 years preceding the Transfer Refund election. Md. Ann.
Code, art. 73B, sec. 11B(5)(b) (1988). The rate of earnings was
then applied retroactively, starting from petitioner's date of
employment, and was compounded annually as if such rate had been
actually earned during each year of service by petitioner. Thus,
the rate of earnings utilized in computing the amount of the
Transfer Refund had no relationship to the actual earnings of
petitioner's contributions, and therefore cannot be considered a
benefit based in part on the separate account of petitioner under
section 414(k).
Second, we reject petitioners' contention because the
existence of a separate account under section 414(k) is
irrelevant for purposes of determining "the balance to the credit
of an employee" under section 402(e)(4)(A). Section 414(k)
provides that a defined benefit plan with a defined contribution
component will be treated, in part, as a defined contribution
plan for purposes of sections 410, 72(d), 411(a)(7)(A), 415, and
401(m). We note that section 414(k) does not specify section
402(e)(4)(C) as one of the sections for purposes of which a
defined benefit plan will be treated as a defined contribution
plan. Therefore, even if petitioner's mandatory contributions
constituted a separate account under section 414(k), this fact
would have no effect in determining petitioner's balance to the
credit. See Green v. Commissioner, T.C. Memo. 1994-340, wherein
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