Section 514(b) of the federal Revenue Act of 1978 extends the benefits of pooled income funds and charitable remainder annuity trusts or charitable remainder unitrusts to trusts created before December 31, 1977 and amended or conformed to qualify as such trusts prior to January 1, 1978. Trusts which are so amended or conformed to qualify as pooled income funds or charitable remainder annuity trusts or unitrusts are with the scope of Chapter 62, Section 11A.
Payments from trusts governed by Chapter 62, Section 11A are subject to Massachusetts income tax withholding at the tax rates applicable to the class of income paid. The amount withheld and paid by the trustee is allowed as a credit to the beneficiary toward his Massachusetts income tax liability.
Commissioner of Revenue
February 15, 1980