Yoyo Corporation maintains a retirement plan for its employees to which it makes 70% of the contributions and the employees make 30%. Gary dies this year and is employed at the time of his death. Gary's spouse will receive an annuity valued at $600,000 from the retirement plan. How much of the annuity will be included in Gary's gross estate?

Question

Quizplus · Accepted Answer

The entire value of the annuity, $600,000, will be included in Gary's gross estate because it is derived from a retirement plan to which Gary was entitled at the time of his death. The proportions of contributions made by the employer and the employee do not affect the inclusion of the retirement plan's value in the gross estate for estate tax purposes.

Yoyo Corporation Maintains a Retirement Plan for Its Employees to Which