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We note that with regard to qualified plans, a QJSA is
generally defined in the Code and regulations in terms of a
reduced joint and survivor annuity. See sec. 417(b); sec.
1.401(a)-11(b)(2), Income Tax Regs.
Petitioner has not identified any plan language which
logically establishes a subsidized joint and 100-percent survivor
annuity as a form of benefit for Rozenblatt and Jakubowicz.
For the above reasons, we agree with respondent's
interpretation of the language of the plans, and we conclude that
under the plans, Rozenblatt and Jakubowicz receive retirement
benefits in the form of joint and 100-percent survivor annuities
that have the same present value as single life annuities for the
life of each participant or reduced joint and 100-percent
survivor annuities. Accordingly, the portion of petitioner's
contributions to the plans that exceed the costs of funding
retirement benefits for Rozenblatt and Jakubowicz in the form of
reduced joint and 100-percent survivor annuities was properly
disallowed by respondent.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011