hard · Certified Financial Planner Tax Planning

A client age 52 receives employer-paid group term life insurance coverage of 450,000. The IRS Table I rate for the 50-54 age band is 0.23 per 1,000 of coverage per month.

What is the annual imputed income for this benefit?

  1. 1,104
  2. 1,242
  3. 0 because group term life insurance is a tax-free fringe benefit for employees.
  4. 1,104.00 annually (92.00 per month).

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