Gary Benton Logsdon and Karen Ruth Logsdon - Page 6

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          purposes of section 72, "employee contributions * * * under a               
          defined contribution plan may be treated as a separate contract."           
          To be treated as a separate contract under section 72(d),                   
          contributions must be made under a defined contribution plan.               
          Section 414(k)(2) creates a hybrid plan, one with both a defined            
          benefit and a defined contribution component.  Section 414(k)(2)            
          allows a defined benefit plan to be treated as a defined                    
          contribution plan to the extent the benefits are based on the               
          separate account of a participant and as a defined benefit plan             
          with respect to the remaining portion of benefits under the                 

               Full refunds, surrenders, redemptions, and maturities.-                
               -This paragraph shall apply to--                                       
                         (i) any amount received, whether in a single                 
               sum or otherwise, under a contract in full discharge of                
               the obligation under the contract which is in the                      
               nature of a refund of the consideration paid for the                   
               contract, and                                                          
                         (ii) any amount received under a contract on                 
               its complete surrender, redemption, or maturity.                       
               In the case of any amount to which the preceding sentence              
               applies, the rule in paragraph [72(e)](2)(A) shall not                 
               6Sec. 414(k) provides in part:                                         
                    SEC. 414(k).  Certain Plans.--A defined benefit                   
               plan which provides a benefit derived from employer                    
               contributions which is based partly on the balance of                  
               the separate account of a participant shall--                          
                                 *  *  *  *  *  *  *                                  

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Last modified: May 25, 2011