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opportunity to participate in, and indeed did participate in,
such an employment-based, tax-advantaged plan. Given these
facts, the distinction that petitioner makes regarding his
employer’s being the Lansing school district rather than the
State of Michigan is inconsequential. The fact remains that
petitioner was an active participant in an employment-based, tax-
advantaged retirement plan provided by the State. We hold
therefore that petitioner actively participated in a plan
established by a State or a political subdivision thereof for its
employees, see sec. 219(g)(5)(A)(iii), and is not entitled to a
tax deduction for his contribution.
Alternatively, the record establishes that the MPSERS is a
plan described in section 401(a) and a trust exempt from tax
under section 501(a). Thus, petitioner is not entitled to an IRA
deduction because he was an active participant in a plan
described in section 219(g)(5)(A)(i).
To reflect our disposition of the disputed issue, as well as
petitioner's concessions,
Decision will be entered
for respondent.
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Last modified: May 25, 2011