Tax TreatmentQuestion 227 of 315
Under IRC §79, how much employer-paid group term life insurance coverage may an employee receive each year without imputed income?
a.Up to $50,000 of coverage
b.Up to $100,000 of coverage
c.Unlimited coverage if the plan is non-discriminatory
d.There is no exclusion; all employer-paid coverage is imputed income
Explanation
IRC §79 excludes the cost of the first $50,000 of employer-paid group term life coverage from the employee's gross income. The cost of coverage above $50,000 is imputed to the employee using IRS Table I rates.
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