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e. A bond purchase plan described in section 405 (before its repeal by P.L. 98-369, effective for obligations issued after December 31, 1983). Exclusion rules for pension, etc., plans. If an annuity under an approved plan described in (a) through (e) above is receivable by a beneficiary other than the executor and the decedent made no contributions under the plan toward the cost, no part of the value of the annuity, subject to the $100,000 limitation (if applicable), is includible in the gross estate. If the decedent made a contribution under a plan described in (a) through (e) above toward the cost, include in the gross estate on this schedule that proportion of the value of the annuity which the amount of the decedent's contribution under the plan bears to the total amount of all contributions under the plan. The remaining value of the annuity is excludable from the gross estate subject to the $100,000 limitation (if applicable). For the rules to determine whether the decedent made contributions to the plan, see Regulations section 20.2039-1(c). IRAs and retirement bonds. The following plans are approved plans for the exclusion rules. f. An individual retirement account described in section 408(a). g. An individual retirement annuity described in section 408(b). h. A retirement bond described in section 409(a) (before its repeal by P.L. 98-369). Exclusion rules for IRAs and retirement bonds. These plans are approved plans only if they provide for a series of substantially equal periodic payments made to a beneficiary for life, or over a period of at least 36 months after the date of the decedent's death. Subject to the $100,000 limitation (if applicable), if an annuity under a “plan” described in (f) through (h) above is receivable by a beneficiary other than the executor, the entire value of the annuity is excludable from the gross estate even if the decedent made a contribution under the plan. However, if any payment to or for an account or annuity described in paragraph (f), (g), or (h) earlier was not allowable as an income tax deduction under section 219 (and was not a rollover contribution, as described in section 2039(e) before its repeal by P.L. 98-369), include in the gross estate on this schedule that proportion of the value of the annuity which the amount not allowable as a deduction under section 219 and not a rollover contribution bears to the total amount paid to or for such account or annuity. For more information, see Regulations section 20.2039-5. Rules applicable to all approved plans. The following rules apply to all approved plans described in paragraphs (a) through (h), earlier. If any part of an annuity under a “plan” described in (a) through (h), earlier, is receivable by the executor, it is generally includible in the gross estate to the extent that it is receivable by the executor in that capacity. In general, the annuity is receivable by the executor if it is to be paid to the executor or if there is an agreement (expressed or implied) that it will be applied by the beneficiary for the benefit of the estate (such as in discharge of the estate's liability for death taxes or debts of the decedent, etc.) or that its distribution will be governed to any extent by the terms of the decedent's will or the laws of descent and distribution. If data available to you does not indicate whether the plan satisfies the requirements of section 401(a), 403(a), 408(a), 408(b), or 409(a), you may obtain that information from the IRS office where the employer's principal place of business is located. Line A. Lump-Sum Distribution Election Note. The following rules have been repealed and apply only if the decedent: • On December 31, 1984, was both a participant in the plan and in pay status (for example, had received at least one benefit payment on or before December 31, 1984) and had irrevocably elected the form of the benefit before July 18, 1984; or • Had separated from service before January 1, 1985, and did not change the form of benefit before death. Generally, the entire amount of any lump-sum distribution is included in the decedent's gross estate. However, under this special rule, all or part of a lump-sum distribution from a qualified (approved) plan will be excluded if the lump-sum distribution is included in the recipient's income for income tax purposes. If the decedent was born before 1936, the recipient may be eligible to elect special “10-year averaging” rules (under repealed section 402(e)) and capital gain treatment (under repealed section 402(a)(2)) in figuring the income tax on the distribution. For more information, see Pub. 575, Pension and Annuity Income. If this option is available, the estate tax exclusion cannot be claimed unless the recipient elects to forego the “10-year averaging” and capital gain treatment in figuring the income tax on the distribution. The recipient elects to forego this treatment by treating the distribution as taxable on the recipient’s income tax return, as described in Regulations section 20.2039-4(d). The election is irrevocable. The amount excluded from the gross estate is the portion attributable to the employer contributions. The portion, if any, attributable to the employee-decedent's contributions is always includible. Also, you may not figure the gross estate in accordance with this election unless you check “Yes” on line A and attach the names, addresses, and identifying numbers of the recipients of the lump-sum distributions. See Regulations section 20.2039-4(d)(2). How To Complete Schedule I In describing an annuity, give the name and address of the grantor of the annuity. Specify if the annuity is under an approved plan. IF . . . THEN . . . the annuity is under an approved plan state the ratio of the decedent's contribution to the total purchase price of the annuity. the decedent was employed at the time of death and an annuity as described earlier in Definitions, Annuity, Example 4 became payable to any beneficiary because the beneficiary survived the decedent state the ratio of the decedent's contribution to the total purchase price of the annuity. -34- Instructions for Form 706 (Rev. 09-2022)