- 15 -
under section 401. Sec. 1.72-15(a), Income Tax Regs.10
Specifically, section 1.72-15(c), Income Tax Regs., provides for
a method of determining the taxation of amounts received as
accident or health benefits, and it describes the relationship of
section 72 with sections 104 and 105. In general, the framework
established under section 72 applies where no exclusion is
available under section 104 or 105. As such, section 1.72-15(c),
Income Tax Regs., applies to distributions from the STRS plan.
In a contributory plan, where accident, health, and
retirement benefits are all included, the accident and health
benefits attributable to employee contributions are tax free.
Sec. 1.72-15(c)(1), Income Tax Regs. Where an employee
contributes to such a combined accident, health, and retirement
plan, any accident and health benefits are presumed to have been
made by the employer’s contributions and not the employee’s
contributions. Sec. 1.72-15(c)(2), Income Tax Regs.11 However,
10 Sec. 1.72-15(a), Income Tax Regs., states:
This section provides the rules for determining the
taxation of amounts received from an employer-
established plan which provides for distributions that
are taxable under section 72 (or for distributions that
are taxable under section 402(a)(2) or (e), or section
403(a)(2), in case of lump sum distributions) and which
also provides for distributions that may be excludable
from gross income under section 104 or 105 as accident
or health benefits. * * *
11 Sec. 1.72-15(c)(2), Income Tax Regs., provides:
(continued...)
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011