26 U.S.C. § 2039: Annuities

The gross estate shall include the value of an annuity or other payment receivable by any beneficiary by reason of surviving the decedent under any form of contract or agreement entered into after March 3, 1931 (other than as insurance under policies on the life of the decedent), if, under such contract or agreement, an annuity or other payment was payable to the decedent, or the decedent possessed the right to receive such annuity or payment, either alone or in conjunction with another for his life or for any period not ascertainable without reference to his death or for any period which does not in fact end before his death. Subsection (a) shall apply to only such part of the value of the annuity or other payment receivable under such contract or agreement as is proportionate to that part of the purchase price therefor contributed by the decedent. For purposes of this section, any contribution by the decedent’s employer or former employer to the purchase price of such contract or agreement (whether or not to an employee’s trust or fund forming part of a pension, annuity, retirement, bonus or profit sharing plan) shall be considered to be contributed by the decedent if made by reason of his employment. The amendments made by this section [amending this section] shall apply to the estates of decedents dying after December 31, 1984 . was a participant in any plan who was in pay status on December 31, 1984 , and irrevocably elected the form of the benefit before the date of the enactment of this Act [ July 18, 1984 ]. separated from service before January 1, 1985 , with respect to paragraph (2), or January 1, 1983 , with respect to section 245(c) of the Tax Equity and Fiscal Responsibility Act of 1982, and meets the requirements of such paragraph or such section other than the requirement that there be an irrevocable election, and that the individual be in pay status,