1. Short title
This Act may be cited as the “Group Term Life Insurance Increase Act”.
Group Term Life Insurance Increase Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the dollar limitation on employer-provided group term life insurance that can be excluded from the gross income of the employee.
2. Increase in limitation on exclusion for employer-provided group term life insurance purchased for employees
In general— Paragraph (1) of section 79(a) of the Internal Revenue Code of 1986 is amended by striking “$50,000” and inserting “$375,000”.
Inflation adjustment— Section 79 of such Code is amended by adding at the end the following new subsection:
“(g) Inflation adjustment
“(1) In general—In the case of any taxable year beginning after 2019, the $375,000 amount under subsection (a)(1) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “2018” for “2016” in subparagraph (A)(ii) thereof.
“(2) Rounding—If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2018.