diff --git a/typed-racket-lib/typed-racket/types/remove-intersect.rkt b/typed-racket-lib/typed-racket/types/remove-intersect.rkt
index 22ca317f..f97fd534 100644
--- a/typed-racket-lib/typed-racket/types/remove-intersect.rkt
+++ b/typed-racket-lib/typed-racket/types/remove-intersect.rkt
@@ -88,8 +88,8 @@
          [(list (Struct: n #f flds _ _ _)
                 (StructTop: (Struct: n* #f flds* _ _ _)))
           #f]
-         [(list (and t1 (Struct: _ _ _ _ _ _))
-                (and t2 (Struct: _ _ _ _ _ _)))
+         [(list (and t1 (Struct: _ _ _ _ #f _))
+                (and t2 (Struct: _ _ _ _ #f _)))
           (or (subtype t1 t2) (subtype t2 t1))]
          [else #t])])))
 
diff --git a/typed-racket-test/succeed/gh-issue-205.rkt b/typed-racket-test/succeed/gh-issue-205.rkt
new file mode 100644
index 00000000..f845b743
--- /dev/null
+++ b/typed-racket-test/succeed/gh-issue-205.rkt
@@ -0,0 +1,14 @@
+#lang typed/racket
+
+;; A test for GH issue #205
+
+(struct (A) foo ([x : A]))
+
+(struct (A) baz foo ())
+
+(define (f [i : Integer]) : (foo Integer)
+    (baz i))
+
+(require typed/rackunit)
+
+(check-equal? (if (baz? (f 1)) 1 2) 1)