TN 12 (02-92)

Citations:

Act, Sec. 209(a)(14)(B), as amended by P.L. 102-227;

20 CFR 404.1059(i).

POLICY

1. General

Any contribution, payment or service provided by an employer under a qualified group legal services plan which meets the requirements in sec. 120 of the IRC are excluded from wages. This exclusion requires a ruling by IRS that the plan is qualified under sec. 120 of the IRC.

2. Limitations on Exclusion

This exclusion is limited to $70 of the plan's annual premium value.

3. Wage Exclusion Expires

For taxable years beginning after June 30, 1992, these employer payments will be wages.