Gary Benton Logsdon and Karen Ruth Logsdon - Page 11

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               The Ninth Circuit, the Courts of Appeals in three other                
          circuits, this Court, and the Court of Federal Claims all                   
          concluded that a lump-sum credit does not fall within the                   
          definition of a defined contribution plan.  Malbon v. United                
          States, supra; Montgomery v. United States, supra; George v.                
          United States, 30 Fed. Cl. 371 (1994), affd. 90 F.3d 473 (Fed.              
          Cir. 1996); Guilzon v. Commissioner, supra at 242; Green v.                 
          Commissioner, supra; Shimota v. United States, 21 Cl. Ct. 510               
          (1990), affd. 943 F.2d 1312 (Fed. Cir. 1991).  We have carefully            
          considered petitioners' other arguments and have concluded that             
          they cannot prevail against the above decisions, even though, to            
          some extent, they have differing strands of reasoning.                      

               Accordingly, we hold that the CSRS plan does not have a                
          defined contribution plan component because the separate account            
          requirement of section 414(k) was not met.  Mr. Logsdon's lump-             
          sum credit is not treated as received under a separate contract             
          for purposes of section 72(d) and is not excludable pursuant to             
          section 72(e)(5)(E).  Finally, we sustain respondent's                      
          determination requiring petitioners to include the entire lump-             
          sum credit of $62,873 in their gross income in 1991 pursuant to             
          section 72(e)(2).                                                           

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