Periodic Payments Act

The Periodic Payment Settlement Act of 1982, clarified Section 104(a)(2) and 79-220, and created a new section, Section 130.

Periodic Payments Act

Rules for the Periodic Payments Act the recipient can have no ownership rights in the annuity contract The Plaintiff cannot control the annuity, i.e., assign, accelerate, defer, increase, or decrease the payments. must be able to exclude the full amount of payments from gross income Payments after death  Any payments made to the estate after the recipient’s death are generally fully excludable for income tax purposes to the extent that the pre-death payments were excludable