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under which the decedent immediately • Had separated from service before If the decedent made a contribution before death and following retirement January 1, 1985, and did not change under a plan described in (a) through was receiving, or was entitled to the form of benefit before death. (e) above toward the cost, include in receive, an annuity payable to the the gross estate on this schedule that The amount excluded cannot exceed decedent for life. After the decedent’s proportion of the value of the annuity $100,000 unless either of the following death, if survived by a designated which the amount of the decedent’s conditions is met: beneficiary, the annuity was payable to contribution under the plan bears to the • On December 31, 1982, the the beneficiary with payments either total amount of all contributions under decedent was both a participant in the fixed by contract or subject to an option the plan. The remaining value of the plan and in pay status (for example, or election exercised or exercisable by annuity is excludable from the gross had received at least one benefit the decedent. However, see Annuities estate subject to the $100,000 limitation payment on or before December 31, Under Approved Plans, below. (if applicable). For the rules to 1982) and the decedent irrevocably determine whether the decedent made 4. A contract or agreement entered elected the form of the benefit before contributions to the plan, see into by the decedent and the January 1, 1983, or Regulations section 20.2039-1(c). decedent’s employer under which at the • The decedent separated from service decedent’s death, before retirement, or IRAs and retirement bonds. The before January 1, 1983, and did not before the expiration of a stated period following plans are approved plans for change the form of benefit before of time, an annuity was payable to a the exclusion rules: death. designated beneficiary, if surviving the f. An individual retirement account Approved Plans decedent. However, see Annuities described in section 408(a), Under Approved Plans below. Approved plans may be separated into g. An individual retirement annuity 5. A contract or agreement under two categories: described in section 408(b), or which the decedent immediately before • Pension, profit-sharing, stock bonus, death was receiving, or was entitled to and other similar plans and h. A retirement bond described in receive, an annuity for a stated period • Individual retirement arrangements section 409(a) (before its repeal by P.L. of time, with the annuity to continue to a (IRAs), and retirement bonds. 98-369). designated beneficiary, surviving the Exclusion rules for IRAs and Different exclusion rules apply to the decedent, upon the decedent’s death retirement bonds. These plans are two categories of plans. and before the expiration of that period approved plans only if they provide for Pension, etc., plans. The following of time. a series of substantially equal periodic plans are approved plans for the 6. An annuity contract or other payments made to a beneficiary for life, exclusion rules: arrangement providing for a series of or over a period of at least 36 months a. An employees’ trust (or a contract substantially equal periodic payments after the date of the decedent’s death. purchased by an employees’ trust) to be made to a beneficiary for life or Subject to the $100,000 limitation, if forming part of a pension, stock bonus, over a period of at least 36 months applicable, if an annuity under a “plan” or profit-sharing plan that met all the after the date of the decedent’s death described in (f) through (h) above is requirements of section 401(a), either under an individual retirement account, receivable by a beneficiary other than at the time of the decedent’s separation annuity, or bond as described in section the executor, the entire value of the from employment (whether by death or 2039(e) (before its repeal by P.L. annuity is excludable from the gross otherwise) or at the time of the 98-369). estate even if the decedent made a termination of the plan (if earlier); contribution under the plan. Payable to the decedent. An annuity b. A retirement annuity contract However, if any payment to or for an or other payment was payable to the purchased by the employer (but not by account or annuity described in decedent if, at the time of death, the an employees’ trust) under a plan that, paragraph (f), (g), or (h) above was not decedent was in fact receiving an at the time of the decedent’s separation allowable as an income tax deduction annuity or other payment, with or from employment (by death or under section 219 (and was not a without an enforceable right to have the otherwise), or at the time of the rollover contribution as described in payments continued. termination of the plan (if earlier), was a section 2039(e) before its repeal by plan described in section 403(a); Right to receive an annuity. The P.L. 98-369), include in the gross c. A retirement annuity contract decedent had the right to receive an estate on this schedule that proportion purchased for an employee by an annuity or other payment if, of the value of the annuity which the employer that is an organization immediately before death, the decedent amount not allowable as a deduction referred to in section 170(b)(1)(A)(ii) or had an enforceable right to receive under section 219 and not a rollover (vi), or that is a religious organization payments at some time in the future, contribution bears to the total amount (other than a trust), and that is exempt whether or not at the time of death the paid to or for such account or annuity. from tax under section 501(a); decedent had a present right to receive For more information, see Regulations payments. d. Chapter 73 of Title 10 of the section 20.2039-5. United States Code; or Rules applicable to all approved Annuities Under Approved plans. The following rules apply to all e. A bond purchase plan described Plans approved plans described in in section 405 (before its repeal by P.L. paragraphs (a) through (h) above. 98-369, effective for obligations issued The following rules relate to whether after December 31, 1983). part or all of an otherwise includible If any part of an annuity under a annuity may be excluded. These rules Exclusion rules for pension, etc., “plan” described in (a) through (h) have been repealed and apply only if plans. If an annuity under an above is receivable by the executor, it the decedent either: “approved plan” described in (a) is generally includible in the gross • On December 31, 1984, was both a through (e) above is receivable by a estate to the extent that it is receivable participant in the plan and in pay status beneficiary other than the executor and by the executor in that capacity. In (for example, had received at least one the decedent made no contributions general, the annuity is receivable by the benefit payment on or before December under the plan toward the cost, no part executor if it is to be paid to the 31, 1984) and had irrevocably elected of the value of the annuity, subject to executor or if there is an agreement the form of the benefit before July 18, the $100,000 limitation (if applicable), is (expressed or implied) that it will be 1984, or includible in the gross estate. applied by the beneficiary for the -24- Part Instructions