Schedule I Form 101 - Annuities & Employe Death Benefits (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE I - ANNUITIES & EMPLOYE DEATH BENEFITS

Report on Schedule I all benefits payable on account of the

taxable. If the beneficiary irrevocably waives the favorable

decedent’s death whether or not included in the taxable

federal income tax treatment, the death benefit is taxable

estate. For any amount not included for inheritance tax

to the extent of the employe’s contribution.

purposes, explain the basis for the exclusion. Report in

section a. any benefit payable to the estate. Use section b.

Individual retirement accounts (IRA’s) - Exempt if pay-

to report any benefit payable to named beneficiaries.

able to beneficiary for life or at least 36 approximately equal

monthly payments.

Include the following information:

• Type of plan

HR10’s & Keogh Plans - Exempt even if payment is made

• Name of plan

in one calendar year provided that the recipient irrevocably

• Name of employer

elects not to claim favorable federal income tax treatment

• Name of beneficiary

(either capital gain deduction or 10-year averaging ).

• Date(s) and amount of payment(s)

• Value at date of death

If any of the above qualified plans are payable to the estate,

they are fully taxable for inheritance tax purposes.

If spousal rights are established, report the value of the

spouse’s right in the “Spousal Rights” column. See the

For deaths on or after August 1, 1983 and before January

instructions to Schedule MP - MARITAL PROPERTY DEC-

1, 1985, the maximum exclusion for all proceeds is $100,000,

LARATION for additional information on reporting marital

even if the proceeds were properly excludable under

property interests. Use the “Payable to Estate and “Pay-

another section of the law.

able to Beneficiary” columns if spousal rights are not

established.

For deaths on or after January 1, 1985, all benefits

are includable for inheritance tax purposes. The only

NONQUALIFIED PLANS: The date of death value of all

exception for qualified plans occurs if two conditions are

federally nonqualified plans is subject to Wisconsin inheri-

both met: 1) the decedent was both a participant in the plan

tance tax.

and in pay status on December 31, 1984 and 2) the

decedent irrevocably elected the form of benefit before

FEDERALLY QUALIFIED PLANS:

July 18, 1984. If this exception is met, submit a complete

copy of the benefit election and proof of its irrevocability.

Annuities - Taxable to the extent of employe’s contribution

at date of death value.

EXEMPT PLANS: Benefits from any employe retire-

ment program of the United States, state of Wisconsin or

Lump-sum - If the beneficiary elects to claim favorable

Wisconsin municipality, whether payable to a decedent’s

federal income tax treatment (either capital gain deduction

estate or a beneficiary are exempt for inheritance tax

or 10-year averaging), the entire lump-sum payment is

purposes.

Schedule I Form 101 - Annuities & Employe Death Benefits Page 2

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