IRS Approves Contingent Set-Asides as Qualifying Distributions for Court-Blocked Amounts

The IRS has issued a private letter ruling under I.R.C. §4942 and Treas. Reg. §53.4942(a) approving contingent set-asides by a trust as qualifying distributions. This ruling applies specifically to amounts that have been blocked by a court. The decision clarifies the treatment of such set-asides for tax purposes.

Originally published by gnews