26 CFR § 31.3121(a)(5)-2

26 CFR · Internal Revenue

§ 31.3121(a)(5)-2 — Payments under or to an annuity contract described in section 403(b).

TitleTitle 26: Internal Revenue PartPart 31: Employment Taxes and Collection of Income Tax at Source

SourceeCFR (current through Mar 20, 2026)

This text of 26 C.F.R. § 31.3121(a)(5)-2 (Payments under or to an annuity contract described in section 403(b).) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

26 C.F.R. § 31.3121(a)(5)-2 (2026).

Text

§ 31.3121(a)(5)-2 Payments under or to an annuity contract described in section 403(b).

(a)Salary reduction agreement defined. For purposes of section 3121(a)(5)(D), the term salary reduction agreement means a plan or arrangement (whether evidenced by a written instrument or otherwise) whereby payment will be made by an employer, on behalf of an employee or his or her beneficiary, under or to an annuity contract described in section 403(b)—

(1)If the employee elects to reduce his or her compensation pursuant to a cash or deferred election as defined at § 1.401(k)-1(a)(3) of this chapter;

(2)If the employee elects to reduce his or her compensation pursuant to a one-time irrevocable election made at or before the time of initial eligibility to participate in such plan or arrangement (or

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§ 31.3121(a)(5)-2 Payments under or to an annuity contract described in section 403(b).

(a) Salary reduction agreement defined. For purposes of section 3121(a)(5)(D), the term salary reduction agreement means a plan or arrangement (whether evidenced by a written instrument or otherwise) whereby payment will be made by an employer, on behalf of an employee or his or her beneficiary, under or to an annuity contract described in section 403(b)—

(1) If the employee elects to reduce his or her compensation pursuant to a cash or deferred election as defined at § 1.401(k)-1(a)(3) of this chapter;

(2) If the employee elects to reduce his or her compensation pursuant to a one-time irrevocable election made at or before the time of initial eligibility to participate in such plan or arrangement (or pursuant to a similar arrangement involving a one-time irrevocable election); or

(3) If the employee agrees as a condition of employment (whether such condition is set by statute, contract, or otherwise) to make a contribution that reduces his or her compensation.

(b) Effective/applicability date. This section is applicable on November 15, 2007.

[T.D. 9367, 72 FR 64942, Nov. 19, 2007]