Rev. Rul. 65-209

Revenue Ruling 64-333, C.B. 1964-2, 114, discusses the status for income tax purposes of premiums paid to purchase annuity contracts on behalf of employees of certain educational institutions. The ruling holds that if all the conditions described under section 403(b) of the Internal Revenue Code of 1954 are met at the time an annuity premium is paid by the employer, the amount of the premium would be excludable from the gross income of the employee to the extent of the applicable exclusion allowance described in the revenue ruling.

To the extent that the amount of a premium described in Revenue Ruling 64-333 is excludable from gross income, such amount is not subject to the wihholding of income tax under section 3402 of the Code.

Revenue Ruling 64-333, C.B. 1964-2, 114, amplified.