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issue. All Rule references are to the Tax Court Rules of
Practice and Procedure. All dollar amounts are rounded to the
nearest dollar.
After concessions by respondent, the sole issue remaining
for decision is whether, under section 402(b), petitioners must
include the aggregate vested accrued benefit of Gant's
participation in the Pension Plan and Profit Sharing Plan in
gross income for the 1991, 1992, and 1993 taxable years.
This dispute stems from Gant's participation in two
initially qualified, but subsequently disqualified, retirement
plans administered by his employer O.W.G. Products, Inc.
(Products). Respondent argues that petitioners must include the
aggregate vested accrued benefits of Gant's participation in
gross income for 1991, 1992, and 1993, because the retirement
plans were disqualified under section 401(a)(26), relating to
"additional participation requirements", on June 30, 1991, and
Gant was a highly compensated employee (within the meaning of
section 414(q)) during the 1991, 1992, and 1993, plan years.
Petitioners counter that said plans were terminated in the June
30, 1988 plan year, and, thus, the plans were not subsequently
required to meet the requirements of section 401(a)(26).
FINDINGS OF FACT
Petitioners are married and resided in California at the
time they filed their petition.
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