[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR20.2039-3]

[Page 319-320]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 20_ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 
1954--Table of Contents
 
Sec.  20.2039-3  Lump sum distributions under ``qualified plans;'' 
decedents dying after December 31, 1976, and before January 1, 1979.

    (a) Limitation of section 2039(c) exclusion. This section applies in 
the case of a decedent dying after December 31, 1976, and before January 
1, 1979. If a lump sum distribution is paid with respect to the decedent 
under a plan described in Sec.  20.2039-2(b) (1) or (2) (a ``qualified 
plan''), no amount payable with respect to the decedent under the plan 
is excludable from the decedent's gross estate under Sec.  20.2039-2.
    (b) ``Lump sum distribution'' defined. For purposes of this section 
the term ``lump sum distribution'' means a lump sum distribution defined 
in section 402(e)(4)(A) that satisfies the requirements of section 
402(e)(4)(C), relating

[[Page 320]]

to the aggregation of certain trusts and plans. The distribution of an 
annuity contract is not a lump sum distribution for purposes of this 
section, and Sec.  20.2039-2 will apply with respect to the distribution 
of an annuity contract without regard to whether the contract is 
included in a distribution that is otherwise a lump sum distribution 
under this paragraph (b). A distribution is a lump sum distribution for 
purposes of this section without regard to the election described in 
section 402(e)(4)(B).
    (c) Amounts payable as a lump sum distribution. If on the date the 
estate tax return is filed, an amount under a qualified plan is payable 
with respect to the decedent as a lump sum distribution (whether at the 
election of a beneficiary or otherwise), for purposes of this section 
the amount is deemed paid as a lump sum distribution no later than on 
such date. Accordingly, no portion of the amount payable under the plan 
is excludable from the value of the decedent's gross estate under Sec.  
20.2039-2. If, however, the amount payable as a lump sum distribution is 
not, in fact, thereafter paid as a lump sum distribution, there shall be 
allowed a credit or refund of any tax paid which is attributable to 
treating such amount as a lump sum distribution under this paragraph. 
Any claim for credit or refund filed under this paragraph must be filed 
within the time prescribed by section 6511, and must provide 
satisfactory evidence that the amount originally payable as a lump sum 
distribution is no longer payable in such form.
    (d) Filing date. For purposes of paragraph (c) of this section, 
``the date the estate tax return is filed'' means the earlier of--
    (1) The date the estate tax return is actually filed, or
    (2) The date nine months after the decedent's death, plus any 
extension of time for filing the estate tax return granted under section 
6081.

[T.D. 7761, 46 FR 7304, Jan. 23, 1981]