§ 20.2039-1 Annuities.§ 20.2039-1T Limitations and repeal of estate tax exclusion for qualified plans and individual retirement plans (IRAs) (temporary).§ 20.2039-2 Annuities under “qualified plans” and section 403(b) annuity contracts.§ 20.2039-3 Lump sum distributions under “qualified plans;” decedents dying after December 31, 1976, and before January 1, 1979.§ 20.2039-4 Lump sum distributions from “qualified plans;” decedents dying after December 31, 1978.§ 20.2039-5 Annuities under individual retirement plans.
Amended 1958, 1962, 1966, 1969, 1972, 1974, 1976, 1978, 1980, 1981, 1982, 1983, 1984, 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1852(e)(1), struck out subsec. (c) which provided an exclusion from gross estate of certain annuity interests created by community property laws.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1848(d), struck out “or a bond described in paragraph (3)” after “an annuity described in paragraph (2)” in concluding provisions as such provisions were applicable to obligations issued after Dec. 31, 1983, and prior to repeal of subsec. (e) by Pub. L. 98–369, § 525(a), see Effective Date of 1984 Amendment note below.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 525(a), substituted provisions relating to exception of certain annuity interests created by community property laws for provisions which related to exemption of annuities under certain trusts and plans.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 525(a), struck out subsec. (d) which related to exemption of certain annuity interests created by community property laws. See subsec. (c) of this section.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 525(a), struck out subsec. (e) which related to exclusion of individual retirement accounts.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 491(d)(34), inserted “or” at end of par. (1), substituted a period for “, or” at end of par. (2), struck out par. (3) which excluded from the value of the gross estate the value of an annuity receivable by any beneficiary, other than the executor, under a retirement bond described in section 409(a), and substituted in provision following par. (2) “or 408(d)(3)” for “405(d)(3), 408(d)(3), or 409(b)(3)(C)”, and substituted “or annuity” for “, annuity, or bond” wherever appearing.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 525(a), struck out subsec. (f) which related to lump sum distributions and an exception where the recipient elects not to take 10-year averaging, and subsec. (g) which related to a $100,000 limitation on the exclusions under subsecs. (c) and (e).
- 1983 Pub. L. 97-448 Pub. L. 97–448, § 103(c)(9)(A), designated existing provisions as subpar. (A), substituted “without regard to the third sentence of section 402(e)(4)(A))” for “without regard to the next to the last sentence of section 402(e)(4)(A)” in subpar. (A) as so designated, and added subpar. (B).
- 1983 Pub. L. 97-448 Pub. L. 97–448, § 103(c)(9)(B), substituted “An amount described” for “A lump sum distribution described”.
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 245(b), substituted “Subject to the limitation of subsection (g), notwithstanding any other provision of this section” for “Notwithstanding the provisions of this section”.
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 245(b), substituted “Subject to the limitation of subsection (g), notwithstanding any other provision of this section” for “Notwithstanding the provisions of this section”.
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 245(a), added subsec. (g).
- 1981 Pub. L. 97-34 Pub. L. 97–34, § 311(d)(1), provided that for purposes of subsec. (c), any deductible employee contributions, within the meaning of par. (5) of section 72(o), shall be considered as made by a person other than the decedent.
- 1981 Pub. L. 97-34 Pub. L. 97–34, § 313(b)(3), inserted reference to rollover contribution described in section 405(d)(3).
- 1981 Pub. L. 97-34 Pub. L. 97–34, § 311(h)(4), substituted “section 219” for “section 219 or 220”.
- 1980 Pub. L. 96-222 Pub. L. 96–222 substituted “(without the application of paragraph (2) thereof), except to the extent that section 402(e)(4)(J) applies to such distribution” for “without the application of paragraph (2) thereof”.
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 142(a), substituted “(other than an amount described in subsection (f))” for “(other than a lump sum distribution described in section 402(e)(4), determined without regard to the next to the last sentence of section 402(e)(4)(A))” in provisions preceding par. (1).
- 1978 Pub. L. 95-600 Pub. L. 95–600, §§ 156(c)(4), 702(j)(1), inserted “section 403(b)(8) (but only to the extent such contribution is attributed to a distribution from a contract described in subsection (c)(3)),” after “403(a)(4)” and inserted “or 220” after “section 219” wherever appearing in provisions following par. (3).
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 142(b), added subsec. (f).
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 2009(c)(2), (3), substituted “other payment (other than a lump sum distribution described in section 402(e)(4), determined without regard to the next to the last sentence of section 402(e)(4)(A)) receivable by any beneficiary” for “other payment receivable by any beneficiary” in provisions preceding par. (1) and substituted “For purposes of this subsection, contributions or payments on behalf of the decedent while he was an employee within the meaning of section 401(c)(1) made under a trust or plan described in paragraph (1) or (2) shall, to the extent allowable as a deduction under section 404, be considered to be made by a person other than the decedent and, to the extent not so allowable, shall be considered to be made by the decedent” for “For purposes of this subsection, contributions or payments on behalf of the decedent while he was an employee within the meaning of section 401(c)(1) made under a trust or plan described in paragraph (1) or (2) shall be considered to be contributions or payments made by the decedent” in provisions following par. (4).
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 2009(c)(1), added subsec. (e).
- 1974 Pub. L. 93-406 Pub. L. 93–406 inserted reference to section 1452(d) in provisions following par. (4).
- 1972 Pub. L. 92-580 Pub. L. 92–580 added subsec. (d).
- 1969 Pub. L. 91-172 Pub. L. 91–172 substituted “section 170(b)(1)(A)(ii) or (vi), or which is a religious organization (other than a trust),” for “section 503(b) (1), (2), or (3),”.
- 1966 Pub. L. 89-365 Pub. L. 89–365 added par. (4), inserted reference to chapter 73 of title 10 of the United States Code in the enumeration of the plans and contracts set out in the prohibition against allowance of exclusion for that part of the value of the amount payable under the plan or contract in the proportion that the total payments or contributions made by the decedent bear to the total payments or contributions made, and provided that, for purposes of this section, amounts payable under chapter 73 of title 10 are attributable to payments or contributions made by the decedent only to the extent of amounts deposited by him pursuant to section 1438 of title 10.
- 1962 Pub. L. 87-792 Pub. L. 87–792 substituted “was a plan described in section 403(a)” for “met the requirements of section 401(a)(3), (4), (5), and (6)” in par. (2), and inserted sentence providing, for purposes of this subsection, that contributions or payments on behalf of the decedent while he was an employee within the meaning of section 401(c)(1) made under a trust or plan described in paragraph (1) or (2) shall be considered to be contributions or payments made by the decedent.
- 1958 Pub. L. 85-866 Pub. L. 85–866, § 67(a), inserted “(4), (5), and (6)” after “section 401(a)(3)”.
- 1958 Pub. L. 85-866 Pub. L. 85–866, § 23(e), added par. (3), inserted “or under contract described in paragraph (3)” in second sentence of subsec. (c) and substituted “paragraph (1) or (2) shall not be considered to be contributed by the decedent, and contributions or payments made by the decedent’s employer or former employer toward the purchase of an annuity contract described in paragraph (3) shall, to the extent excludable from gross income under section 403(b),” for “this subsection shall” in third sentence of subsec. (c).
Cases: Gray v. United States, 410 F.2d 1094 (3rd Cir. 1969); Kramer v. United States, 406 F.2d 1363 (Ct. Cl. 1969); Fusz v. Commissioner, 46 T.C. 214 (1966)
Final rules 1
(a) General The gross estate shall include the value of an annuity or other payment receivable by any beneficiary by reason of surviving the decedent under any form of contract or agreement entered into after March 3, 1931 (other than as insurance under policies on the life of the decedent), if, under such contract or agreement, an annuity or other payment was payable to the decedent, or the decedent possessed the right to receive such annuity or payment, either alone or in conjunction with another for his life or for any period not ascertainable without reference to his death or for any period which does not in fact end before his death.
Cited by 2
(b) Amount includible Subsection (a) shall apply to only such part of the value of the annuity or other payment receivable under such contract or agreement as is proportionate to that part of the purchase price therefor contributed by the decedent. For purposes of this section, any contribution by the decedent’s employer or former employer to the purchase price of such contract or agreement (whether or not to an employee’s trust or fund forming part of a pension, annuity, retirement, bonus or profit sharing plan) shall be considered to be contributed by the decedent if made by reason of his employment.