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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
plan.6
5(...continued)
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
apply.
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--
* * * * * * *
(continued...)
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Last modified: May 25, 2011