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does not require separate funding or funding over the actual
working lives of the covered employees.
Petitioner also argues that respondent cannot add
requirements to section 419A(c)(2) when respondent has failed to
prescribe regulations as required by section 419A(i). Petitioner
contends that it took steps to determine the reasonable and
necessary amount it could deduct as a contribution based on the
guidance provided by the Code.
These remaining arguments relate to the amount of funding
and the level of funding of the VEBA Trust. Because petitioner
failed to meet the minimum requirement of establishing a reserve
funded over the working lives of the covered employees, we do not
reach the question of the actuarial correctness of the 1987
contributions and do not discuss the parties’ expert testimony
relating to that issue.
Petitioner’s situation is not distinguishable from that of
the taxpayer in General Signal. We decline petitioner’s
invitation to reconsider General Signal. Therefore, respondent’s
determination that the contribution for postretirement benefits
is not deductible will be sustained.
Medical Benefits for Union Members
No account limit applies in the case of a qualified asset
account under a separate welfare benefit fund under a collective
bargaining agreement. Sec. 419A(f)(5)(A). Prior law called for
the Treasury Department to issue regulations to establish special
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