Commissioner v. Keystone Consolidated Industries, Inc.

For the reasons stated in the opinions of the Tax Court, 60 TCM 1423 (1990), ¶ 90,628 P-H Memo TC, and the Court of Appeals, 951 F. 2d 76 (CA5 1992), I am persuaded that the transfer of unencumbered property to a pension trust is not a “sale or exchange” prohibited by 26 U. S. C. § 4975(c)(1)(A) of the Internal Revenue Code. I would merely add these two observations.

*163In holding that an employer’s transfer of unencumbered property to a pension fund in satisfaction of a funding obligation is a “sale or exchange” barred by § 4975(c)(1)(A), the Court draws upon the well-established rule that for…