PLR 201142006: IRS Determines State Employee Retirement Trust's Income Is Excludable

The IRS has issued a public letter ruling determining that the income of a trust set up to pay retirement benefits to former state employees is excludable from gross income under section 115 of the tax code. The IRS determined that the income was derived from an essential government function, and therefore should be excluded. The IRS also determined that the trust was not required to file an annual tax return.

See PLR 201142006 (Oct. 21, 2011).

Posted by Adam Bair, Associate Editor, Wealth Strategies Journal