Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return Page 31
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553. A contract or agreement entered
On December 31, 1984, was both a
e. A bond purchase plan described in
into by the decedent and employer
participant in the plan and in pay status
section 405 (before its repeal by P.L.
under which the decedent immediately
(for example, had received at least one
98-369, effective for obligations issued
before death and following retirement
benefit payment on or before December
after December 31, 1983).
was receiving, or was entitled to
31, 1984) and had irrevocably elected
Exclusion rules for pension, etc.,
receive, an annuity payable to the
the form of the benefit before July 18,
plans. If an annuity under an approved
decedent for life. After the decedent's
1984; or
plan described in (a) through (e) above
death, if survived by a designated
Had separated from service before
is receivable by a beneficiary other than
beneficiary, the annuity was payable to
January 1, 1985, and did not change the
the executor and the decedent made no
the beneficiary with payments either
form of benefit before death.
contributions under the plan toward the
fixed by contract or subject to an option
cost, no part of the value of the annuity,
The amount excluded cannot exceed
or election exercised or exercisable by
subject to the $100,000 limitation (if
$100,000 unless either of the following
the decedent. However, see Annuities
applicable), is includible in the gross
conditions is met.
Under Approved Plans, later.
estate.
On December 31, 1982, the
4. A contract or agreement entered
decedent was both a participant in the
If the decedent made a contribution
into by the decedent and the decedent's
plan and in pay status (for example, had
under a plan described in (a) through (e)
employer under which at the decedent's
received at least one benefit payment
above toward the cost, include in the
death, before retirement, or before the
on or before December 31, 1982) and
gross estate on this schedule that
expiration of a stated period of time, an
the decedent irrevocably elected the
proportion of the value of the annuity
annuity was payable to a designated
form of the benefit before January 1,
which the amount of the decedent's
beneficiary, if surviving the decedent.
1983; or
contribution under the plan bears to the
However, see Annuities Under
The decedent separated from service
total amount of all contributions under
Approved Plans, later.
before January 1, 1983, and did not
the plan. The remaining value of the
5. A contract or agreement under
change the form of benefit before death.
annuity is excludable from the gross
which the decedent immediately before
estate subject to the $100,000 limitation
death was receiving, or was entitled to
Approved Plans
(if applicable). For the rules to
receive, an annuity for a stated period of
determine whether the decedent made
Approved plans may be separated into
time, with the annuity to continue to a
contributions to the plan, see
two categories.
designated beneficiary, surviving the
Regulations section 20.2039-1(c).
Pension, profit-sharing, stock bonus,
decedent, upon the decedent's death
and other similar plans, and
IRAs and retirement bonds. The
and before the expiration of that period
Individual retirement arrangements
following plans are approved plans for
of time.
(IRAs) and retirement bonds.
the exclusion rules.
6. An annuity contract or other
f. An individual retirement account
arrangement providing for a series of
Different exclusion rules apply to the
described in section 408(a),
substantially equal periodic payments to
two categories of plans.
be made to a beneficiary for life or over
g. An individual retirement annuity
Pension, etc., plans. The following
a period of at least 36 months after the
described in section 408(b), or
plans are approved plans for the
date of the decedent's death under an
h. A retirement bond described in
exclusion rules:
individual retirement account, annuity,
section 409(a) (before its repeal by P.L.
or bond as described in section 2039(e)
a. An employees' trust (or a contract
98-369).
(before its repeal by P.L. 98-369).
purchased by an employees' trust)
Exclusion rules for IRAs and
forming part of a pension, stock bonus,
Payable to the decedent. An annuity
retirement bonds. These plans are
or profit-sharing plan that met all the
or other payment was payable to the
approved plans only if they provide for a
requirements of section 401(a), either at
decedent if, at the time of death, the
series of substantially equal periodic
the time of the decedent's separation
decedent was in fact receiving an
payments made to a beneficiary for life,
from employment (whether by death or
annuity or other payment, with or
or over a period of at least 36 months
otherwise) or at the time of the
without an enforceable right to have the
after the date of the decedent's death.
termination of the plan (if earlier);
payments continued.
Subject to the $100,000 limitation (if
b. A retirement annuity contract
applicable), if an annuity under a “plan”
Right to receive an annuity. The
purchased by the employer (but not by
described in (f) through (h) above is
decedent had the right to receive an
an employees' trust) under a plan that,
receivable by a beneficiary other than
annuity or other payment if, immediately
at the time of the decedent's separation
the executor, the entire value of the
before death, the decedent had an
from employment (by death or
annuity is excludable from the gross
enforceable right to receive payments at
otherwise), or at the time of the
estate even if the decedent made a
some time in the future, whether or not
termination of the plan (if earlier), was a
contribution under the plan.
at the time of death the decedent had a
plan described in section 403(a);
present right to receive payments.
However, if any payment to or for an
c. A retirement annuity contract
account or annuity described in
purchased for an employee by an
Annuities Under Approved
paragraph (f), (g), or (h) earlier was not
employer that is an organization
Plans
allowable as an income tax deduction
referred to in section 170(b)(1)(A)(ii) or
The following rules relate to whether
under section 219 (and was not a
(vi), or that is a religious organization
part or all of an otherwise includible
rollover contribution as described in
(other than a trust), and that is exempt
annuity may be excluded. These rules
section 2039(e) before its repeal by P.L.
from tax under section 501(a);
have been repealed and apply only if
98-369), include in the gross estate on
d. Chapter 73 of Title 10 of the United
the decedent either:
this schedule that proportion of the
States Code; or
Part Instructions
-31-
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