PLR 201014045: IRS Rules on Tax Issues in Regards to Trust that Provides Health Benefits to Retired Employees

In PLR 201014045, The IRS ruled income from a trust that provides health benefits to retired employees of an entity that is funded by the state excludable under Section 115 from gross income.  It also ruled that no requirement exists under Section 6012(a)(4) for the trust to file an income tax return.  Finally, it ruled that contributions to the trust will be excludable under Sections 106 and 105(b) from gross income of the retired employees. 


See also Trust Income is Exempt as Exercise of Essential Government Function, 2010 TNT 69-26, April 12, 2010.

Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.