TN 10 (09-90)
RS 01402.324 Retirement Benefits On Account Of Disability
Act, Secs. 209(a)(2)(C), 209(a)(11)(A);
20 CFR 404.1049(a)(2)(ii) and (b), 20 CFR 404.1059(f)
1. When Payments are not Wages
Payments are wage exclusions under the Act if:
Made under an employer's plan, and
Upon or after termination of employment, and
Retirement is on account of disability.
2. When Payments are Wages
Payments are not wage exclusions if they would have been made regardless of whether or how the employment terminated.
NOTE: Retirement on account of disability must have been a condition of the plan for the payment to be excluded from wages.
The examples in RS 01402.305, Payments Upon Death, also apply with respect to retirement for disability.
If development is necessary in order to make a wage exclusion determination, follow the development outlined in RS 01402.305.