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respectively. This repeated taking of loans from the Defined
Benefit Plan and leaving minimal cash balances in the Trust
account was clearly imprudent and contrary to the purpose of
ERISA. The purpose of ERISA was not to establish a tax-exempt
pocketbook for Morrissey.
Morrissey made no repayments on any of the six loans from
the Defined Benefit Plan. The Form 5500 for the plan year ended
October 31, 1990, reports total plan assets of $191,680 as of the
beginning of the plan year, including $152,112 in loans to
Morrissey and $646 in cash. Furthermore, it reports total plan
assets of $179,628 as of the end of the plan year, including
$137,270 in real estate and mortgages and $2,295 in cash. The
Form 5500 seems to suggest that Morrissey repaid all or part of
the $152,112 in loans that he owed to the Defined Benefit Plan
with $137,270 in real estate. However, we previously found that
Morrissey transferred his 50-percent interest in two parcels of
unencumbered real estate to the Money Purchase Plan and that he
never transferred any value to the Defined Benefit Plan to repay
his loans from the Defined Benefit Plan assets. See Morrissey v.
Commissioner, T.C. Memo. 1998-443. Moreover, the administrative
record contains no deeds or other evidence that any real estate
was transferred to the Defined Benefit Plan. Consequently, even
though the Form 5500 reports that the Defined Benefit Plan holds
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