PARRIS N. GLENDENING, Governor                             Ch. 270

1.       retirement;

2.       sickness or accident disability payments under a workers'
compensation law;

3.       medical or hospitalization expenses in connection with
sickness or accident disability;

4.       a cafeteria plan as defined in 26 U.S.C. § 125, if the payments
would not be treated as wages [ under] OUTSIDE a cafeteria plan;

5.       dependent care assistance to the extent that the assistance
payments would be excludable from gross income under the provisions of 26 U.S.C. § 127
or § 129; or

6.       death;

(ii) any amount that an employing unit pays for insurance or an
annuity or into a fund to provide for a payment described in item (i) of this paragraph;

(iii) any payment on account of sickness or accident disability or
medical or hospitalization expenses in connection with sickness or accident disability
made by the employing unit to or on behalf of an employee at least 6 calendar months
after the last calendar month in which the employee worked for the employing unit;

(iv) any payment made to or on behalf of an employee or beneficiary of
the employee:

1.       from or to a trust exempt from tax under § 401(a) of the
Internal Revenue Code at the time of the payment, unless the payment is made to an
employee of the trust as compensation for services rendered as an employee and not as
beneficiary of the trust; or                                                                             

2.       under or to an annuity plan that, at the time of payment,
meets the requirements of § 401(a)(3) through (6) of the Internal Revenue Code;

(v) with respect to compensation paid to an employee for domestic
service in a private home of the employing unit or for agricultural labor, the payment by
an employing unit without deduction of the tax imposed on an employee under § 3101 of
the Internal Revenue Code;

(vi) any payment required from an employee under a state
unemployment insurance law;

(vii) compensation paid in any medium other than cash to an employee
for service not in the course of the trade or business of the employing unit;

(viii) any payment other than vacation or sick pay made to an
employee after the month in which the employee becomes 65 years old if the employee
did not work for the employing unit in the period for which the payment is made;

(ix) any payment, including an amount paid into a fund to provide for
any payment by an employing unit to or on behalf of an employee under a plan or system

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