Joe’s salary is $200,000 and he receives a group term life insurance policy equal to two...

Joe’s salary is $200,000 and he receives a group term life insurance policy equal to two times his salary. Presuming the plan is non-discriminatory, how much of the face-value of the insurance policy, if any, is subject to inclusion in his W-2 income?

1. $0

2. $50,000

3. $150,000

4. $350,000

Solutions

Expert Solution

In a non-discriminatory Section 79 plan, the first $50,000 of coverage is provided free to all employees.

Any benefit over $50,000 shall be included in his W-2 income.

Life insurance policy is of $400,000($200,000*2)

Therefore, the correct answer is $350,000.

ekkarill92 answered 1 year ago

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