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== Section 79 plan == Section 79 of the Internal Revenue Code details the tax consequences and requirements for corporations wishing to install a group-term life insurance plan. Permanent life insurance may also be offered as an added benefit in a Section 79 plan. Section 79 plans are non-qualified as defined by the Internal Revenue Code, but still offer a tax deduction for sponsoring employers. Employees participating in a Section 79 plan offered by a sponsoring corporation may receive up to $50,000 in group term life insurance at no cost, if the plan is non-discriminatory. Any amount over this limit is deemed a 'permanent benefit'. The employee should realize a portion of the permanent benefit as W-2 taxable income, and pay any applicable taxes accordingly. Contributions to a Section 79 plan are tax-deductible, though for owner(s), and 2% or more shareholders, contributions are only deductible if paid by, and from, a C Corporation. Although the available number of insurance companies that sell a Section 79 permanent product may be limited, a Section 79 benefit program may allow the following benefits. # The ability to purchase permanent life insurance with corporate dollars # Deduct all of the cost to the C corporation as a business expense〔policy loans and withdrawals reduce the policies cash value and death benefit and may result in a taxable event〕 # Allow the transfer of corporate dollars to the business owner on a tax-favored basis〔although 100% deductible at the corporate level, contributions to a section 79 plan also provide an economic benefit to the owner and income tax will be required on approximately 60% of the contribution〕 # Grow the money in the plan in a tax-deferred setting # Access to money in the plan can be achieved through policy loans on a tax-deferred basis # Death benefits can pass to heirs on an income tax-free basis. # There are no regulatory limits on funding for the key participants # May provide asset protection by removing plan assets from the reach of company creditors # Provides for minimal rank and file employee cost # Insurance cash values may provide tax-free income as long as the policy is kept in force and withdrawals do not exceed the cost basis A section 79 plan may be used for the following applications # Group life insurance benefits # Deductible insurance to fund estate planning needs of the business owner # Deductible insurance to provide personal life insurance needs for the owner # Deductible insurance to fund a buy-sell agreement or key man policy # Future business buyout on a tax-advantaged basis 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Internal Revenue Code section 79」の詳細全文を読む スポンサード リンク
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