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 (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.
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.
Aug. 16, 1954, ch. 73668A Stat. 384Pub. L. 85–866, title I72 Stat. 1622Pub. L. 87–792, § 7(i)76 Stat. 830Pub. L. 89–365, § 2(a)80 Stat. 33Pub. L. 91–172, title I, § 101(j)(23)83 Stat. 528Pub. L. 92–580, § 2(a)86 Stat. 1276Pub. L. 93–406, title II, § 2007(b)(4)88 Stat. 994Pub. L. 94–455, title XX, § 2009(c)(1)90 Stat. 1894Pub. L. 95–600, title I92 Stat. 2796Pub. L. 96–222, title I, § 101(a)(8)(B)94 Stat. 201Pub. L. 97–34, title III95 Stat. 280Pub. L. 97–248, title II, § 245(a)96 Stat. 524Pub. L. 97–448, title I, § 103(c)(9)96 Stat. 2377Pub. L. 98–369, div. A, title IV, § 491(d)(34)98 Stat. 851Pub. L. 99–514, title XVIII100 Stat. 2857(, ; , §§ 23(e), 67(a), , , 1658; , , ; , , ; , , ; , , ; , , ; –(3), , , 1895; , §§ 142(a), (b), 156(c)(4), title VII, § 702(j)(1), , , 2803, 2931; , , ; , §§ 311(d)(1), (h)(4), 313(b)(3), , , 282, 286; , (b), , ; , , ; , title V, § 525(a), , , 873; , §§ 1848(d), 1852(e)(1)(A), , , 2868.)
Editorial Notes
Amendments
Pub. L. 99–514, § 1852(e)(1)1986—Subsec. (c). , struck out subsec. (c) which provided an exclusion from gross estate of certain annuity interests created by community property laws.
Pub. L. 99–514, § 1848(d)Pub. L. 98–369, § 525(a)Subsec. (e). , 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 , and prior to repeal of subsec. (e) by , see Effective Date of 1984 Amendment note below.
Pub. L. 98–369, § 525(a)1984—Subsec. (c). , 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.
Pub. L. 98–369, § 525(a)Subsec. (d). , struck out subsec. (d) which related to exemption of certain annuity interests created by community property laws. See subsec. (c) of this section.
Pub. L. 98–369, § 525(a)Subsec. (e). , struck out subsec. (e) which related to exclusion of individual retirement accounts.
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.
Pub. L. 98–369, § 525(a)Subsecs. (f), (g). , 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).
Pub. L. 97–448, § 103(c)(9)(A)1983—Subsec. (f)(1). , 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).
Pub. L. 97–448, § 103(c)(9)(B)Subsec. (f)(2). , substituted “An amount described” for “A lump sum distribution described”.
Pub. L. 97–248, § 245(b)1982—Subsec. (c). , substituted “Subject to the limitation of subsection (g), notwithstanding any other provision of this section” for “Notwithstanding the provisions of this section”.
Pub. L. 97–248, § 245(b)Subsec. (e). , substituted “Subject to the limitation of subsection (g), notwithstanding any other provision of this section” for “Notwithstanding the provisions of this section”.
Pub. L. 97–248, § 245(a)Subsec. (g). , added subsec. (g).
Pub. L. 97–34, § 311(d)(1)o1981—Subsec. (c). , provided that for purposes of subsec. (c), any deductible employee contributions, within the meaning of par. (5) of section 72(), shall be considered as made by a person other than the decedent.
Pub. L. 97–34, § 313(b)(3)Subsec. (e). , inserted reference to rollover contribution described in section 405(d)(3).
Pub. L. 97–34, § 311(h)(4), substituted “section 219” for “section 219 or 220”.
Pub. L. 96–2221980—Subsec. (f)(2). 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”.
Pub. L. 95–600, § 142(a)1978—Subsec. (c). , 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).
Pub. L. 95–600Subsec. (e). , §§ 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).
Pub. L. 95–600, § 142(b)Subsec. (f). , added subsec. (f).
Pub. L. 94–455, § 2009(c)(2)1976—Subsec. (c). , (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).
Pub. L. 94–455, § 2009(c)(1)Subsec. (e). , added subsec. (e).
Pub. L. 93–4061974—Subsec. (c). inserted reference to section 1452(d) in provisions following par. (4).
Pub. L. 92–5801972—Subsec. (d). added subsec. (d).
Pub. L. 91–1721969—Subsec. (c)(3). 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),”.
Pub. L. 89–365section 1438 of title 101966—Subsec. (c). 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 .
Pub. L. 87–7921962—Subsec. (c). 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.
Pub. L. 85–866, § 67(a)1958—Subsec. (c)(2). , inserted “(4), (5), and (6)” after “section 401(a)(3)”.
Pub. L. 85–866, § 23(e)Subsec. (c)(3) and closing sentences. , 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).
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Pub. L. 99–514, title XVIII, § 1852(e)(1)(B)100 Stat. 2868
section 1848(d) of Pub. L. 99–514Pub. L. 98–369, div. Asection 1881 of Pub. L. 99–514section 48 of this titleAmendment by effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, , to which such amendment relates, see , set out as a note under .
Effective Date of 1984 Amendment
section 491(d)(34) of Pub. L. 98–369section 491(f)(1) of Pub. L. 98–369section 62 of this titleAmendment by applicable to obligations issued after , see , set out as a note under .
Pub. L. 98–369, div. A, title V, § 525(b)(1)98 Stat. 874Pub. L. 99–514, title XVIII, § 1852(e)(3)100 Stat. 2868
In general .—
Exception for participants in pay status .—
Irrevocable election .—
Effective Date of 1983 Amendment
Pub. L. 97–448Pub. L. 97–34section 109 of Pub. L. 97–448section 1 of this titleAmendment by effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, , to which such amendment relates, see , set out as a note under .
Effective Date of 1982 Amendment
Pub. L. 97–248, title II, § 245(c)96 Stat. 525Pub. L. 98–369, div. A, title V, § 525(b)(3)98 Stat. 874
Effective Date of 1981 Amendment
Pub. L. 97–34section 311(i)(1) of Pub. L. 97–34section 219 of this titleAmendment by section 311(d)(1), (h)(4) of applicable to taxable years beginning after , see , set out as a note under .
section 313(b)(3) of Pub. L. 97–34section 313(c) of Pub. L. 97–34section 219 of this titleAmendment by applicable to redemptions after , in taxable years ending after such date, see , set out as a note under .
Effective Date of 1980 Amendment
Pub. L. 96–222section 101(b)(1)(D) of Pub. L. 96–222section 691 of this titleAmendment by applicable with respect to the estates of decedents dying after , see , set out as a note under .
Effective Date of 1978 Amendment
Pub. L. 95–600, title I, § 142(c)92 Stat. 2796
section 156(c)(4) of Pub. L. 95–600section 156(d) of Pub. L. 95–600section 403 of this titleAmendment by applicable to distributions or transfers made after , in taxable years beginning after such date, see , set out as a note under .
Pub. L. 95–600, title VII, § 702(j)(3)(A)92 Stat. 2932
Effective Date of 1976 Amendment
Pub. L. 94–455, title XX, § 2009(e)(3)(A)90 Stat. 1896
Effective Date of 1974 Amendment
Pub. L. 93–406section 2007(c) of Pub. L. 93–406section 122 of this titleAmendment by applicable to taxable years ending on or after , with respect to individuals dying on or after , see , set out as a note under .
Effective Date of 1972 Amendment
Pub. L. 92–580, § 2(b)86 Stat. 1276Pub. L. 99–514, § 2100 Stat. 2095
Effective Date of 1969 Amendment
Pub. L. 91–172section 101(k)(1) of Pub. L. 91–172section 4940 of this titleAmendment by effective , see , set out as an Effective Date note under .
Effective Date of 1966 Amendment
Pub. L. 89–365, § 2(c)80 Stat. 33
Effective Date of 1962 Amendment
Pub. L. 87–792section 8 of Pub. L. 87–792section 22 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1958 Amendment
section 23(e) of Pub. L. 85–866section 23(g) of Pub. L. 85–866section 403 of this titleAmendment by applicable with respect to estates of decedents dying after , see , set out as a note under .
Pub. L. 85–866, title I, § 67(b)72 Stat. 1659
Plan Amendments Not Required Until January 1, 1989
Pub. L. 99–514section 1140 of Pub. L. 99–514section 401 of this titleFor provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .