Bernard McMenamy, Contractor, Inc. v. Commissioner
United States Tax Court
M Corp. established a profit-sharing plan under which employer contributions were allocated among the participants on the basis of their compensation weighted for years of past service. As a result of the weighting for past services, employer contributions allocated to the account of the sole stockholder and principal executive officer of M Corp., were proportionately greater in relation to compensation than the allocations to all the other plan participants.
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M Corp. established a profit-sharing plan under which employer contributions were allocated among the participants on the basis of their compensation weighted for years of past service. As a result of the weighting for past services, employer contributions allocated to the account of the sole stockholder and principal executive officer of M Corp., were proportionately greater in relation to compensation than the allocations to all the other plan participants. Held, the weighting for past services results in discrimination in contributions under sec. 401(a)(4), I.R.C. 1954, and the plan…
1Opinion of the Court
Bernard McMenamy, Contractor, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent; McMenamy Employees' Profit Sharing Plan, August O. Doenges, Trustee, Petitioner v. Commissioner of Internal Revenue, Respondent
Bernard McMenamy, Contractor, Inc. v. Commissioner
Docket Nos. 6908-65, 6909-65
United States Tax Court
54 T.C. 1057; 1970 U.S. Tax Ct. LEXIS 133;
May 25, 1970, Filed
Decisions will be entered under Rule 50.
M Corp. established a profit-sharing plan under which employer contributions were allocated among the participants on the basis of their compensation weighted for years of…
Also in this document: Concurrence; Dissent.
2Cases cited5 opinions
- United States v. CorrellSupreme Court of the United States · 1967
- United States v. SullivanSupreme Court of the United States · 1927
- Bernard McMenamy, Contractor, Inc. v. CommissionerUnited States Tax Court · 1970
- Ryan School Retirement Trust v. CommissionerUnited States Tax Court · 1955
- Ets-Hokin & Galvan, Inc. v. CommissionerUnited States Tax Court · 1962