freedigitalphotos.net
If a group-term life insurance plan qualifies under Code Section 79, how much cost of insurance is tax-free to employees?
Answer:
A) The first $20,000
Incorrect. Try again!
B) The first $30,000
Incorrect. Try again!
C) The first $40,000
Incorrect. Try again!
D) The first $50,000
Correct!
According to "Employee Benefit and Retirement Planning" (The National Underwriter Company), because virtually all employees have at least some basic need for life insurance, and as there are few other ways to obtain tax-free life insurance, most employers would find it difficult to find reasons not to provide a group-term plan, at least at levels up to the $50,000 tax-free limit.
