Section 11A. Every trustee of a pooled income fund, as defined in section six hundred and forty-two (c)(5) of the Code, and every trustee of a charitable remainder annuity trust or a charitable remainder unitrust, as defined in section six hundred and sixty-four (d) of the Code, who is an inhabitant of the commonwealth and who makes payment to a beneficiary who is an inhabitant of the commonwealth of income subject to the taxes imposed by this chapter shall deduct and withhold tax upon such income at the rate or rates applicable under the provisions of this chapter to the class or classes of income so paid. The amount deducted and withheld as tax, as provided herein, shall be allowed as a credit to the beneficiary entitled to the income against the tax imposed thereon.

Terms Used In Massachusetts General Laws ch. 62 sec. 11A

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Trustee: A person or institution holding and administering property in trust.
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