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Section 404(a) covers deductions in respect of contributions
to pension trusts, employees' annuities, stock bonus and profit-
sharing trusts, foreign trusts, and other plans "deferring the
receipt of * * * compensation." Section 404(a)(5) deals with
deductions in respect of "other plans" specifically including
deductions for "vacation pay which is treated as deferred
compensation".7 Section 404(b) provides that any method or
arrangement that has the effect of a plan deferring the receipt
of compensation or other benefits for employees will be treated
as a deferred compensation plan. Section 1.404(b)-1T A-2,
Temporary8 Income Tax Regs., 51 Fed. Reg. 4312, 4321-4322 (Feb.
4, 1986), provides:
(a) For purposes of section 404(a), (b), and (d),
a plan, or method or arrangement, defers the receipt of
compensation or benefits to the extent it is one under
which an employee receives compensation or benefits
more than a brief period of time after the end of the
employer's taxable year in which the services creating
7 Sec. 404(a)(5) provides:
(5) Other plans.--If the plan is not one included
in paragraph (1), (2), or (3), in the taxable year in
which an amount attributable to the contribution is
includible in the gross income of employees
participating in the plan, but, in the case of a plan
in which more than one employee participates only if
separate accounts are maintained for each employee.
For purposes of this section, any vacation pay which is
treated as deferred compensation shall be deductible
for the taxable year of the employer in which paid to
the employee.
8 Temporary regulations are accorded the same weight as final
regulations. Truck & Equipment Corp. v. Commissioner, 98 T.C.
l41, 149 (1992); Zinniel v. Commissioner, 89 T.C. 357 (1987),
affd. 883 F.2d 1350 (7th Cir. 1989).
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