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fact that an employee/owner (Dr. Hirshkowitz) reported P.S. 58
income as to the benefits that he received from the Lakewood
Plan. Consistent with the Neonatology determination, respondent
determined primarily that Lakewood’s contributions to its plan
were not deductible under section 162(a) to the extent they did
not provide current-year life insurance protection. Respondent
determined alternatively that the contributions were not
deductible under section 404(a)(5); respondent determined that
the Lakewood Plan was not a “welfare benefit fund” under section
419(e) but a nonqualified plan of deferred compensation subject
to the rules of section 404. Respondent determined as a second
alternative that, assuming that the Lakewood Plan is a “welfare
benefit fund”, any deduction of the contributions was precluded
by section 419; for this purpose, respondent determined that the
SC VEBA was not a “10-or-more employer plan” under section
419A(f)(6) as asserted by petitioners.
As to the petitioning individuals of the Lakewood group,
respondent determined that each group of petitioning individuals
had “additional income” in the following amounts for the
respective years from 1991 through 1993: Dr. and Ms.
Hirshkowitz-–$254,051, $136,678, and $211,120; Dr. and Ms. Desai-
–$122,750, $42,056, and $55,000; Dr. and Ms. McManus-–$20,000,
$17,921, and $18,186; and the Estate of Steven Sobo, Deceased,
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