TITLE 26. INTERNAL REVENUE CODE § 402. Taxability of beneficiary of employees’ trust., 26 USCS § 402
Summary
(a) Taxability of beneficiary of exempt trust. Except as otherwise provided in this section, any amount actually distributed to any distributee by any employees’ trust described in section 401(a) [26 USCS § 401(a)] which is exempt from tax under section 501(a) [26 USCS § 501(a)] shall be taxable to the distributee, in the taxable year of the distributee in which distributed, under section 72 [26 USCS § 72] (relating to annuities).
(b) Taxability of beneficiary of nonexempt trust.
(1) Contributions. Contributions to an employees’ trust made by an employer during a taxable year of the employer which ends with or within a taxable year of the trust for which the trust is not exempt from tax under section 501(a) [26 USCS § 501(a)] shall be included in the gross income of the employee in accordance with section 83 [26 USCS § 83] (relating to property transferred in connection with performance of services), except that the value of the employee’s interest in the trust shall be substituted for the ...