NOTE: This alert will apply to you if your benefit package includes an employer paid life insurance benefit in excess of $50,000 and/or domestic partner coverage.
IRS Section 79 – Group-Term Life Insurance
The first $50,000 of Group-Term Life Insurance is excluded from gross income pursuant to Section 79 of the IRS Code. Any Group-Term Life Insurance coverage in excess of that amount is taxed as imputed income under Table I of the section 79 regulations. The first Table I was published in 1966 and has been subsequently revised in 1983, 1988 and 1999.
Below is the current Table I rate schedule.
