Gary Benton Logsdon and Karen Ruth Logsdon - Page 8

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          plan as "a plan which provides for an individual account for each           
          participant and for benefits based solely on the amount                     
          contributed to the participant's account, and any income,                   
          expenses, gains, and losses, and any forfeitures of accounts of             
          other participants which may be allocated to such participant's             
          account."  Although petitioners acknowledge that a defined                  
          contribution plan must provide for an individual account for each           
          participant, and the benefits therefrom must be based on the                
          amounts contributed, they contend that gains and losses are not             
          required to be allocated to a participant's account and that                
          maintaining individual records of the participant's contributions           
          is sufficient.  Petitioners focus on the inclusion of the terms             
          "any" and "may" in section 414(i) in defining a defined                     
          contribution plan.                                                          
               In support of their contention, petitioners rely upon the              
          decision in Guilzon v. Commissioner, 985 F.2d 819 (5th Cir.                 
          1993), affg. on other grounds 97 T.C. 237 (1991), in which the              
          Court of Appeals for the Fifth Circuit rejected the Government's            
          assertion that earnings and losses must be allocated to the                 
          participant's account.  The Court of Appeals focused on the                 
          language of section 414(i) and concluded that an account can                
          qualify as a separate account without having gains and losses               
          being credited to the participant's account.  Id. at 822.  While            
          ultimately concluding that the taxpayer's lump-sum credit was               

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