(a) We do not include as wages any payment made—

Ask an employment law question, get an answer ASAP!
Thousands of highly rated, verified employment lawyers
Specialties include: Employment Law, EEOC, Pension and Compensation, Harassment Law, Discrimination Law, Termination Law, General Legal and more.
Click here to chat with a lawyer about your rights.

(1) Into a tax-exempt trust or annuity plan by your employer on behalf of you or your beneficiary; or

(2) From a tax-exempt trust or under an annuity plan to, or on behalf of, you or your beneficiary.

(b) The trust must be exempt from tax under sections 401 and 501(a) of the Code, and the annuity plan must be a plan described in section 403(a) of the Code when payment is made.

(c) The exclusion does not apply to payments to an employee of the trust for work done as an employee of the trust.

[55 FR 7310, Mar. 1, 1990]