- 16 - this presumption can be rebutted. Accident and health benefits will be attributed to employee contributions where the plan expressly provides: (1) That the accident or health benefits are provided in whole or in part by employee contributions; and (2) the portion of employee contributions to be used to provide the accident or health benefits. Id. Accordingly, absent an explicit plan provision, section 1.72-15(c)(2), Income Tax Regs., deems that the accident and health payments are attributable to the employer contributions and, therefore, taxable to the employee. While petitioners tried to show, rationally, through their alleged 8-percent contribution that they were entitled to their chosen exclusion percentage, their rationale does not address the requirements of the controlling regulation. The record does not indicate that the STRS plan provided that accident or health benefits were provided in whole or in part by Mr. Wright’s contributions, nor did the plan specify any portion of Mr. Wright’s contributions to be used for accident or health 11(...continued) However, if the plan does not expressly provide that the accident or health benefits are to be provided with employee contributions and the portion of employee contributions to be used for such purpose, it will be presumed that none of the employee contributions is used to provide such benefits. Thus, in the case of a contributory pension plan, it will be presumed that the disability pension is provided by employer contributions, unless the plan expressly provides otherwise * * * [Emphasis added.]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