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Despite this broad definition, we have long held that the term
"accident or health plan" presupposes a predetermined course of
action and that it signifies something more than merely one or
more ad hoc benefit payments. Gordon v. Commissioner, 88 T.C.
630, 635 (1987); American Foundry v. Commissioner, 59 T.C. 231,
238-239 (1972), affd. in part and revd. in part 536 F.2d 289 (9th
Cir. 1976); Lang v. Commissioner, 41 T.C. 352, 356-357 (1963);
Estate of Kaufman v. Commissioner, 35 T.C. 663, 666 (1961), affd.
300 F.2d 128 (6th Cir. 1962).
Generally, deferred compensation plans and accident or
health plans serve distinct purposes. Deferred compensation
plans are designed to remunerate an employee for services
rendered over a substantial period of time. Accident or health
plans, on the other hand, provide payments to employees in the
event of illness or injury, without regard to such factors as
compensation, length of service, and company profitability.
Thus, in order to come within the scope of section 105,
petitioners must show by "clear indicia" that the deferred
compensation plan in question was intended to serve the dual
purpose of providing accident or health benefits as well as
retirement benefits. Berman v. Commissioner, 925 F.2d 936, 938-
939 (6th Cir. 1991), affg. T.C. Memo. 1989-654; Caplin v. United
States, 718 F.2d 544, 549 (2d Cir. 1983); Gordon v. Commissioner,
supra at 640.
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