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this frame of reference, it is at least arguable that
includability in income and receipt are matching elements with
the result that since the amounts represented by the letter of
credit were includable in the income of the employees as of March
13, 1992, they were "received" by the employees on that date and
the "window" provided by the 2-1/2 month rule of section
1.404(b)-1T(c) has been satisfied. Such a conclusion would be
based upon the proposition that the word "received" in the
regulations, standing as it does without any qualifying adjective
such as "actually", means nothing more than received for income
tax purposes.
However, we find it necessary to go beyond this simple
analysis because the governing statutory provision, section
404(a)(5), speaks in terms of payment as well as includability in
income. Before proceeding to discuss the implications of this
statutory thrust, there are several tangential elements which
should be noted. First, the 2-1/2 month rule is not specifically
10(...continued)
performance requirements of section 461(h) and sections 404
and 419?
A-1: * * * In the case of a contribution or compensation
subject to section 404 or 419, pursuant to the authority
under section 461(h)(2), economic performance occurs (i) in
the case of a plan subject to section 404, either as the
contribution is made under the plan or, if section 404(a)(5)
is applicable, as an amount attributable to such
contribution is includible in the gross income of an
employee. * * * [Emphasis added.]
See discussion of sec. 1.461(h)-4T, which mirrors this
explanation, in Rev. Rul. 88-68, 1988-2 C.B. 117.
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