- 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 Next
Last modified: May 25, 2011