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PUBLIC LAW 88-272-FEB. 26, 1964 SEC. 204. GROUP-TERM LIFE PLOYEES. (a)
76^stlt^*iooi^' 26 USC 71-78.
72 Stat. 1613. 26 USC 213.
26 USC 170.
26 USC 72^^' Post, p. 37.
INSURANCE
[78 STAT.
PURCHASED FOR EM-
INCLUSION IN INCOME.—
(1) Part II of subchapter B of chapter 1 (relating to items specifically included in gross income) is amended by adding at the end thereof the following new section: "SEC. 79. GROUP-TERM LIFE INSURANCE PURCHASED FOR EMPLOYEES. " (a) GENERAL RULE.—There shall be included in the gross income of an employee for the taxable year an amount equal to the cost of group-term life insurance on his life provided for part or all of such year under a policy (or policies) carried directly or indirectly by his employer (or employers); but only to the extent that such cost exceeds the sum of— " (1) the cost of $50,000 of such insurance, and "(2) the amount (if any) paid by the employee toward the purchase of such insurance. "(b) EXCEPTIONS.—Subsection (a) shall not apply to— "(1) the cost of group-term life insurance on the life of an individual which is provided under a policy carried directly or indirectly by an employer after such individual has terminated his employment with such employer and either has reached the retirement age with respect to such employer or is disabled (within the meaning of paragraph (3) of section 213(g), determined without regard to paragraph (4) thereof), "(2) the cost of any portion of the group-term life insurance on the life of an employee provided during part or all of the taxable year of the employee under which— " (A) the employer is directly or indirectly the beneficiary, or " (B) a person described in section 170(c) is the sole beneficiary, for the entire period during such taxable year for which the employee receives such insurance, and "(3) the cost of any group-term life insurance which is provided under a contract to which section 72(m)(3) applies. "(c) DEI'ERMINATION OF COST OF INSURANCE.—For purposes of this se(ition and section 6052, the cost of group-term insurance on the life of an employee provided during any period shall be determined on the basis of uniform premiums (computed on the basis of 5-year age brackets) prescribed by regulations by the Secretary or his delegate. In the case of an employee who has attained age 64, the cost prescribed shall not exceed the cost with respect to such individual if he were age 63." (2) The table of sections for part II of subchapter B of chapter 1 is amended by adding at the end thereof the following: "Sec. 79. Group-term life insurance purchasecl for employees."
26 USC 7701. 26 USC 104.
6/Stat.'6i6'^' 75 Stat! 626.' 26 USC 3401.
(;|) Section 7701(a) (20) (defining employee) is amended by striking out "For the purpose of applying the provisions of sections 104 and inserting in lieu thereof "For the purpose of applying the provisions ot section 79 with respect to group-tenn life insurance purchased for employees, for the purpose of applying the provisions of sections 104". ^*') WITHHOLDING.—Section 3401(a) (relating to definition of wages) is amended by striking out the period at the end of paragraph ^j3^.jj^j inserting in lieu thereof "; or, and by adding at the end thereof the following new paragraph: " (14) in the form of group-term life insurance on the life of an employee; or".
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