26 U.S.C. § 122 | Certain reduced uniformed services retirement pay

(a)

General rule

In the case of a member or former member of the uniformed services of the United States, gross income does not include the amount of any reduction in his retired or retainer pay pursuant to the provisions of chapter 73 of title 10, United States Code.

(b)

Special rule

(1)

Amount excluded from gross income

In the case of any individual referred to in subsection (a), all amounts received as retired or retainer pay shall be excluded from gross income until there has been so excluded an amount equal to the consideration for the contract. The preceding sentence shall apply only to the extent that the amounts received would, but for such sentence, be includible in gross income.

(2)

Consideration for the contract

For purposes of paragraph (1) and section 72(n), the term “consideration for the contract” means, in respect of any individual, the sum of—

(A)

January 1, 1966 the total amount of the reductions before , in his retired or retainer pay by reason of an election under chapter 73 of title 10 of the United States Code, and

(B)

any amounts deposited at any time by him pursuant to section 1438 or 1452(d) of such title 10.

Pub. L. 89–365, § 1(a)(1)Mar. 8, 196680 Stat. 32 Pub. L. 93–406, title IISept. 2, 197488 Stat. 992 Pub. L. 113–295, div. A, title II, § 221(a)(21)Dec. 19, 2014128 Stat. 4040(Added , , ; amended , §§ 2005(c)(10), 2007(a), (b)(1), , , 994; , , .)

Editorial Notes

Prior Provisions

section 140 of this titleA prior section 122 was renumbered .

Amendments

Pub. L. 113–295December 31, 19652014—Subsec. (b)(1). struck out “after ,” after “all amounts received”.

Pub. L. 93–406, § 2007(a)December 31, 19651974—Subsec. (a). , substituted “United States, gross income does not include the amount of any reduction in his retired or retainer pay pursuant to the provisions of chapter 73 of title 10, United States Code” for “United States who has made an election under chapter 73 of title 10 of the United States Code to receive a reduced amount of retired or retainer pay, gross income does not include the amount of any reduction after , in his retired or retainer pay by reason of such election”.

Pub. L. 93–406, § 2005(c)(10)oSubsec. (b)(2). , substituted “72(n)” for “72()”.

Pub. L. 93–406, § 2007(b)(1)section 1452(d) of title 10Subsec. (b)(2)(B). , inserted reference to .

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Pub. L. 113–295Dec. 19, 2014section 221(b) of Pub. L. 113–295 section 1 of this titleAmendment by effective , subject to a savings provision, see , set out as a note under .

Effective Date of 1974 Amendment

section 2005(c)(10) of Pub. L. 93–406Dec. 31, 1973Dec. 31, 1973section 2005(d) of Pub. L. 93–406 section 402 of this titleAmendment by applicable only with respect to distributions or payments made after , in taxable years beginning after , see , set out as a note under .

September 21, 1972“The amendments made by this section [amending this section and sections 72, 101, and 2039 of this title] apply to taxable years ending on or after . The amendments made by paragraphs (3) and (4) of subsection (b) [amending sections 101 and 2039 of this title] apply with respect to individuals dying on or after such date”.

, , , provided that:

Effective Date

Pub. L. 89–365, § 1(d)Mar. 10, 196680 Stat. 33

section 72 of this titleDecember 31, 1965section 101 of this titleDecember 31, 1965“The amendments made by subsections (a) and (b) [enacting this section and amending ] shall apply with respect to taxable years ending after . The amendment made by subsection (c) [amending ] shall apply with respect to individuals making an election under chapter 73 of title 10 of the United States Code who die after .”

, , , provided that: