Rev. Rul. 69-250

The purpose of this Revenue Ruling is to update and restate, under the current statute and regulations, the position set forth in PS No. 14, dated August 24, 1944, relating to an agreement by several employer corporations to maintain a consolidated and joint pension plan and trust intended to meet the requirements of section 401(a) of the Internal Revenue Code of 1954.

Section 1.401-1(d) of the Income Tax Regulations provides that a trust forming part of a plan of several employers for their employees will be qualified if all the requirements of the Code are otherwise satisfied. Such a trust may be qualified regardless of whether the employers are members of an "affiliated group" of corporations as defined in section 1504(a) of the Code.

Accordingly, an employees' trust may be qualified under section 401(a) of the Code and exempt under section 501(a) even though several corporations make contributions thereto. However, the provisions relating to qualification under section 401(a) of the Code as well as the provisions relating to deductions under section 404(a) of the Code are applicable to each employer separately.

PS No. 14 is hereby superseded since the position stated therein is restated under curent law in this Revenue Ruling.

¹ Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.