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Code, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
On April 3, 1997, respondent issued a final nonqualification
letter to petitioner stating that the Westchester Plastic
Surgical Associates Defined Benefit Plan (the Defined Benefit
Plan) failed to meet the requirements of section 401(a) for the
plan years ending October 31, 1990, and thereafter, and that its
related trust (the Trust) was not tax exempt under section 501(a)
for trust years ending with or within the affected plan years.
Respondent also revoked the prior favorable determination letter
to petitioner dated December 5, 1988.
The issue for decision is whether petitioner's Defined
Benefit Plan violated the exclusive benefit rule under section
401(a)(2).1
1Petitioner also has a Money Purchase Pension Plan which it
adopted effective as of Jan. 15, 1972. We note that throughout
both petitioner's and respondent's briefs, both petitioner and
respondent refer to the Defined Benefit Plan and the Money
Purchase Plan as if they were one plan. However, we note that
there are two separate plans: The Defined Benefit Plan and the
Money Purchase Pension Plan. See Morrissey v. Commissioner, T.C.
Memo. 1998-443. Since the petition addresses only the Defined
Benefit Plan and attaches only the Nonqualification Letter for
the Defined Benefit Plan and since the administrative record
contains only the Nonqualification Letter for the Defined Benefit
Plan, we will address only the qualification of the Defined
Benefit Plan.
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