- 10 -
1987-61 (holding that an Internal Revenue Service employee's
disability retirement annuity payments received under the Civil
Service Retirement System were not excludable under section
104(a)(2) because the payments were intended to provide for the
physical and mental well-being of the employee and were not
damages from the settlement or prosecution of a legal suit); see
also Federal Employees' Retirement System Act of 1986, Pub. L.
99-335, sec. 100A, 100 Stat. 516 (listing the purposes of FERS,
none of which include compensation for tort type claims). Thus,
section 104(a)(2) does not apply here.
Sections 104(a)(3) and 105(a)
Section 104(a)(3) excludes from gross income amounts
received by an employee "through accident or health insurance for
personal injuries or sickness" except to the extent such amounts
are (A) attributable to contributions made by the employer which
were not includable in the gross income of the employee, or (B)
paid by the employer. Section 105(a) is essentially the mirror
image of section 104(a)(3), and, subject to two exceptions,
includes in the gross income of an employee amounts received
through accident or health insurance for personal injuries or
sickness to the extent such amounts are (A) attributable to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011