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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.]
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