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section 401(a), whether employer contributions are to be included
in the employees' incomes is determined in accordance with
section 83. Sec. 402(b); Ludden v. Commissioner, supra at 830.
In determining whether a plan is qualified under section 401(a),
the operation of the trust is relevant as are its terms.
Winger's Dept. Store, Inc. v. Commissioner, 82 T.C. 869, 876
(1984); Quality Brands, Inc. v. Commissioner, 67 T.C. 167, 174
(1976); sec. 1.401-1(b)(3), Income Tax Regs.
Section 401(a)(2)6 provides that for a trust forming part of
an employer's pension plan to be exempt, it must be impossible,
at any time prior to the satisfaction of all liabilities with
respect to the employer's employees and their beneficiaries under
the trust, for any part of the corpus or income to be used for,
or diverted to, purposes other than for the exclusive benefit of
6 Sec. 401(a) provides, in pertinent part, as follows:
SEC. 401(a). Requirements for Qualification.--A trust
created or organized in the United States and forming part of
a stock bonus, pension, or profit-sharing plan of an employer
for the exclusive benefit of his employees or their
beneficiaries shall constitute a qualified trust under this
section--
* * * * * * *
(2) if under the trust instrument it is impossible, at
any time prior to the satisfaction of all liabilities
with respect to employees and their beneficiaries under
the trust, for any part of the corpus or income to be
* * * used for, or diverted to, purposes other than for the
exclusive benefit of his employees or their beneficiaries
* * *
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