3994 / Is a death benefit payable under a Keogh plan includable in a self-employed individual’s gross estate?

Yes, generally, as to decedents dying after 1984.

Estates of Decedents Dying After 1984

The federal estate taxation of survivor benefits payable under a Keogh plan ( Q 3827) is the same in the estate of a self-employed individual/participant as in the estate of a participant covered under a corporate plan ( Q 3993).

Estates of Decedents Dying After 1953 and Before 1985

The federal estate tax exclusion ( Q 3993) is available to the estates of self-employed individuals covered under qualified plans. For purposes of the exclusion, contributions or payments on behalf of the decedent participant while he or she was covered as a self-employed individual ( Q 3932) are treated as employer contributions to the extent they were deductible as contributions to a qualified plan ( Q 3940); to the extent they were not so deductible, such contributions or payments are treated as employee contributions.¹