- 9 -
contributions. Thus, for example, elective
contributions are treated as employer contributions for
purposes of sections 401(a) and 401(k), 402, 404, 409,
411, 412, 415, 416, and 417.
The issue in respect of elective deferrals has been before
this Court under substantially identical circumstances. See
Steel Balls, Inc. v. Commissioner, T.C. Memo. 1995-266, affd.
without published opinion 89 F.3d 841 (8th Cir. 1996).6 We
rejected the same argument presented herein and concluded that
respondent's position was clearly supported by the statute and
regulations. We reach the same conclusion herein and hold that
the elective deferrals are employer contributions and not
included in "participant's compensation". Consequently, the
amounts of the elective deferrals are included in annual
additions.7 Sec. 415(c)(2).
Petitioner also seeks to include in "participant's
compensation" the amounts of the commissions or bonuses that
6 The Small Business Job Protection Act of 1996, Pub. L.
104-188, sec. 1434(a), 110 Stat. 1807, added sec. 415(c)(3)(D)
which includes certain deferrals in participant's compensation,
effective for years beginning after Dec. 31, 1997. This
amendment does not apply to the instant case. We note, however,
that the legislative history makes clear that Congress considered
the provisions of the then-existing law as requiring the result
reached herein and specifically intended to change the law for
future years. H. Rept. 104-586 at 112 (1996), 1996-3 C.B. 331,
450; S. Rept. 104-281 at 80 (1996); H. Conf. Rept. 104-737 at
245-246 (1996), 1996-3 C.B. 741, 985-986.
7 Since the years involving the elective deferrals are
fiscal years ending June 30, 1986, and June 30, 1987, only a
portion of the employee contributions would have been included.
Sec. 415(c)(2)(B); see supra note 4.
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