Distributions allocated as income, when--definitions--balanceallocated to principal, when--effect of separate accounts or funds.
469.437. 1. As used in this section, the following terms mean:
(1) "Payment", an amount that is:
(a) Received or withdrawn from a plan; or
(b) One of a series of distributions that have been or will bereceived over a fixed number of years or during the life of one or moreindividuals under any contractual or other arrangement, or is a singlepayment from a plan that the trustee could have received over a fixednumber of years or during the life of one or more individuals;
(2) "Plan", a contractual, custodial, trust or other arrangement thatprovides for distributions to the trust, including, but not limited to,qualified retirement plans, Individual Retirement Accounts, Roth IndividualRetirement Accounts, public and private annuities, and deferredcompensation, including payments received directly from an entity asdefined in section 469.423 regardless of whether or not such distributionsare made from a specific fund or account.
2. If any portion of a payment is characterized as a distribution tothe trustee of interest, dividends or a dividend equivalent, the trusteeshall allocate the portion so characterized to income. The trustee shallallocate the balance of that payment to principal.
3. If no part of a payment is allocated to income pursuant tosubsection 2 of this section, then for each accounting period of the trustthat any payment is received by the trust with respect to the trust'sinterest in a plan, the trustee shall allocate to income that portion ofthe aggregate value of all payments received by the trustee in thataccounting period equal to the amount of plan income attributable to thetrust's interest in the plan for that calendar year. The trustee shallallocate the balance of that payment to principal.
4. For purposes of this section, if a payment is received from a planthat maintains a separate account or fund for its participants or accountholders, including, but not limited to, defined contribution retirementplans, Individual Retirement Accounts, Roth Individual Retirement Accounts,and some types of deferred compensation plans, the phrase "plan income"shall mean either the amount of the plan account or fund held for thebenefit of the trust that, if the plan account or fund were a trust, wouldbe allocated to income pursuant to sections 469.401 to 469.467 for thataccounting period, or four percent of the value of the plan account or fundon the first day of that accounting period. The method of determining planincome pursuant to this subsection shall be chosen by the trustee in thetrustee's discretion. The trustees may change the method of determiningplan income pursuant to this subsection for any future accounting period.
5. For purposes of this section if the payment is received from aplan that does not maintain a separate account or fund for its participantsor account holders, including by way of example and not limitation definedbenefit retirement plans and some types of deferred compensation plans, theterm "plan income" shall mean four percent of the total present value ofthe trust's interest in the plan as of the first day of the accountingperiod, based on reasonable actuarial assumptions as determined by thetrustee.
6. If, to obtain an estate or gift tax marital deduction for a trust,a trustee shall allocate more of a payment to income than provided for bythis section, the trustee shall allocate to income the additional amountnecessary to obtain the marital deduction.
Distributions allocated as income, when--definitions--balanceallocated to principal, when--effect of separate accounts or funds.
469.437. 1. As used in this section, the following terms mean:
(1) "Payment", an amount that is:
(a) Received or withdrawn from a plan; or
(b) One of a series of distributions that have been or will bereceived over a fixed number of years or during the life of one or moreindividuals under any contractual or other arrangement, or is a singlepayment from a plan that the trustee could have received over a fixednumber of years or during the life of one or more individuals;
(2) "Plan", a contractual, custodial, trust or other arrangement thatprovides for distributions to the trust, including, but not limited to,qualified retirement plans, Individual Retirement Accounts, Roth IndividualRetirement Accounts, public and private annuities, and deferredcompensation, including payments received directly from an entity asdefined in section 469.423 regardless of whether or not such distributionsare made from a specific fund or account.
2. If any portion of a payment is characterized as a distribution tothe trustee of interest, dividends or a dividend equivalent, the trusteeshall allocate the portion so characterized to income. The trustee shallallocate the balance of that payment to principal.
3. If no part of a payment is allocated to income pursuant tosubsection 2 of this section, then for each accounting period of the trustthat any payment is received by the trust with respect to the trust'sinterest in a plan, the trustee shall allocate to income that portion ofthe aggregate value of all payments received by the trustee in thataccounting period equal to the amount of plan income attributable to thetrust's interest in the plan for that calendar year. The trustee shallallocate the balance of that payment to principal.
4. For purposes of this section, if a payment is received from a planthat maintains a separate account or fund for its participants or accountholders, including, but not limited to, defined contribution retirementplans, Individual Retirement Accounts, Roth Individual Retirement Accounts,and some types of deferred compensation plans, the phrase "plan income"shall mean either the amount of the plan account or fund held for thebenefit of the trust that, if the plan account or fund were a trust, wouldbe allocated to income pursuant to sections 469.401 to 469.467 for thataccounting period, or four percent of the value of the plan account or fundon the first day of that accounting period. The method of determining planincome pursuant to this subsection shall be chosen by the trustee in thetrustee's discretion. The trustees may change the method of determiningplan income pursuant to this subsection for any future accounting period.
5. For purposes of this section if the payment is received from aplan that does not maintain a separate account or fund for its participantsor account holders, including by way of example and not limitation definedbenefit retirement plans and some types of deferred compensation plans, theterm "plan income" shall mean four percent of the total present value ofthe trust's interest in the plan as of the first day of the accountingperiod, based on reasonable actuarial assumptions as determined by thetrustee.
6. If, to obtain an estate or gift tax marital deduction for a trust,a trustee shall allocate more of a payment to income than provided for bythis section, the trustee shall allocate to income the additional amountnecessary to obtain the marital deduction.
Distributions allocated as income, when--definitions--balanceallocated to principal, when--effect of separate accounts or funds.
469.437. 1. As used in this section, the following terms mean:
(1) "Payment", an amount that is:
(a) Received or withdrawn from a plan; or
(b) One of a series of distributions that have been or will bereceived over a fixed number of years or during the life of one or moreindividuals under any contractual or other arrangement, or is a singlepayment from a plan that the trustee could have received over a fixednumber of years or during the life of one or more individuals;
(2) "Plan", a contractual, custodial, trust or other arrangement thatprovides for distributions to the trust, including, but not limited to,qualified retirement plans, Individual Retirement Accounts, Roth IndividualRetirement Accounts, public and private annuities, and deferredcompensation, including payments received directly from an entity asdefined in section 469.423 regardless of whether or not such distributionsare made from a specific fund or account.
2. If any portion of a payment is characterized as a distribution tothe trustee of interest, dividends or a dividend equivalent, the trusteeshall allocate the portion so characterized to income. The trustee shallallocate the balance of that payment to principal.
3. If no part of a payment is allocated to income pursuant tosubsection 2 of this section, then for each accounting period of the trustthat any payment is received by the trust with respect to the trust'sinterest in a plan, the trustee shall allocate to income that portion ofthe aggregate value of all payments received by the trustee in thataccounting period equal to the amount of plan income attributable to thetrust's interest in the plan for that calendar year. The trustee shallallocate the balance of that payment to principal.
4. For purposes of this section, if a payment is received from a planthat maintains a separate account or fund for its participants or accountholders, including, but not limited to, defined contribution retirementplans, Individual Retirement Accounts, Roth Individual Retirement Accounts,and some types of deferred compensation plans, the phrase "plan income"shall mean either the amount of the plan account or fund held for thebenefit of the trust that, if the plan account or fund were a trust, wouldbe allocated to income pursuant to sections 469.401 to 469.467 for thataccounting period, or four percent of the value of the plan account or fundon the first day of that accounting period. The method of determining planincome pursuant to this subsection shall be chosen by the trustee in thetrustee's discretion. The trustees may change the method of determiningplan income pursuant to this subsection for any future accounting period.
5. For purposes of this section if the payment is received from aplan that does not maintain a separate account or fund for its participantsor account holders, including by way of example and not limitation definedbenefit retirement plans and some types of deferred compensation plans, theterm "plan income" shall mean four percent of the total present value ofthe trust's interest in the plan as of the first day of the accountingperiod, based on reasonable actuarial assumptions as determined by thetrustee.
6. If, to obtain an estate or gift tax marital deduction for a trust,a trustee shall allocate more of a payment to income than provided for bythis section, the trustee shall allocate to income the additional amountnecessary to obtain the marital deduction.
