CLLA Update-Ex-Employees Can Exclude 90 Percent of Bankrupt Airline Tickets
Sharon Edmondson, Washington Legislative Team Member | April 08, 2015
In Announcement 2015-13, the IRS has said that qualified former airline employees who received payments from bankrupt airlines as part of a termination benefit plan can exclude up to 90 percent of the amount from their gross income. The payment can be excluded if it is rolled into a traditional IRA within 180 days of receipt. The IRS also prolonged the filing time for an amended return by an airline employee who wants to exclude rollover amounts to an IRA until April 15, 2015.