Section 11-A-4.9. Deferred compensation, annuities, and similar payments

(a)  In  this  section,  "payment"  means a payment that a trustee may
  receive over a fixed number of years or during the life of one  or  more
  individuals  because of services rendered or property transferred to the
  payer in exchange for future payments. The term includes a payment  made
  in  money or property from the payer's general assets or from a separate
  fund created by the payer, including a private or commercial annuity, an
  individual  retirement   account,   and   a   pension,   profit-sharing,
  stock-bonus, or stock-ownership plan.
    (b)  To  the  extent  that a payment is characterized as interest or a
  dividend or a payment made in lieu of interest or a dividend, a  trustee
  shall allocate it to income. The trustee shall allocate to principal the
  balance  of  the  payment  and  any  other  payment received in the same
  accounting period that is not characterized as interest, a dividend,  or
  an equivalent payment.
    (c)  If no part of a payment is characterized as interest, a dividend,
  or an equivalent payment, and all or part of the payment is required  to
  be made, a trustee shall allocate to income ten percent of the part that
  is  required  to be made during the accounting period and the balance to
  principal. If no part of a payment is required to be made or the payment
  received is the entire amount to which  the  trustee  is  entitled,  the
  trustee  shall allocate the entire payment to principal. For purposes of
  this paragraph, a payment is not "required to be  made"  to  the  extent
  that it is made because the trustee exercises a right of withdrawal.
    (d)  If,  to  obtain  an  estate  tax marital deduction for a trust, a
  trustee must allocate more of a payment to income than provided  for  by
  this section, the trustee shall allocate to income the additional amount
  necessary to obtain the marital deduction.
    (e)  This  section  does  not  apply  to  payments  to which 11-A-4.10
  applies.