IRS Information Letter: Income Inclusion of Life Insurance for Retired Federal Employee (IRC §79)

Response to request from a federal retiree asking if the value of his group-term life insurance coverage, provided through the Federal Employee Group Life Insurance (FEGLI) program, must be included in his gross income following retirement, the IRS released July 6. Tax code Section 79 and the regulations provide that life insurance provided through an employer that exceeds $50,000 is includible in income, the IRS stated. The regulations provide that the rules are applicable to former employees as well, the IRS provided. [IRS Info. Letter 2021-0006]

Reference:
View Source Document.