Tom is 68 years old. His employer pays the premiums for group term life insurance coverage of
Question:
Tom is 68 years old. His employer pays the premiums for group term life insurance coverage of $110,000.The cost to the company for Tom’s coverage is $3,000.
a. If the plan providing this coverage is nondiscriminatory and Tom is not a key employee, how much gross income does Tom have?
b. How does your answer to
(a) change if Tom is a key employee?
c. If the plan is discriminatory, but Tom is not a key employee, what is Tom’s gross income?
d. How does your answer to
(c) change if Tom is a key employee?
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Related Book For
Taxation For Decision Makers 2008
ISBN: 9780324654110
2nd Edition
Authors: Shirley Dennis-Escoffier, Karen A. Fortin
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