Group Life & AnnuitiesQuestion 104 of 315
Under Internal Revenue Code Section 79, how much employer-paid group term life coverage on an employee is excluded from the employee's taxable income?
a.The first $50,000
b.The first $25,000
c.The first $100,000
d.All employer-paid coverage regardless of amount
Explanation
Section 79 excludes the cost of the first $50,000 of employer-paid group term life coverage from the employee's taxable income. The cost of coverage above $50,000, calculated from IRS Table I, is imputed income on the employee's W-2.
Law Reference: 26 U.S.C. §79Practice all 315 questions free — no signup required.
Related questions on this topic
- Under a group life insurance plan sponsored by an employer, who holds the master contract and who receives a certificate of insurance?
- An employee with $100,000 of group term life coverage is terminated. How long does she have to convert to an individual permanent policy without proof of insurability?
- Which federal agency has primary responsibility for enforcing ERISA's fiduciary, disclosure, and reporting rules for employer-sponsored benefit plans?
- An annuity is best described as protection against which risk?
- In an annuity contract, whose life is used to calculate the periodic payouts during the annuitization phase?
- In a fixed annuity, who bears the investment risk on the funds the owner has paid in?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Life & Health Insurance License Exam · How we review