[Code of Federal Regulations] [Title 26, Volume 15] [Revised as of January 1, 2007] From the U.S. Government Printing Office via GPO Access [CITE: 26CFR31.3121(a)(3)-1] [Page 28] TITLE 26--INTERNAL REVENUE CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) PART 31_EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE--Table Subpart B_Federal Insurance Contributions Act (Chapter 21, Internal Revenue Code of 1954) Sec. 31.3121(a)(3)-1 Retirement payments. The term ``wages'' does not include any payment made by an employer to an employee (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) on account of the employee's retirement. Thus, payments made to an employee on account of his retirement are excluded from wages under this exception even though not made under a plan or system.