§ 403. Taxation of employee annuities
Taxability of beneficiary under a qualified annuity plan
Distributee taxable under section
72 If an annuity contract is purchased by an employer for an employee under a plan which meets the requirements of section
(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section), the amount actually distributed to any distributee under the contract shall be taxable to the distributee (in the year in which so distributed) under section
72 (relating to annuities).