Issue: Under federal law, if an employer amends an employee life insurance benefit program and no longer requires employees to contribute to the premiums and offers a lump-sum payment as reimbursement for previous premiums paid, is there an argument that the lump sum payment is a form of deferred compensation?
| Area of Law: | Insurance Law, Tax Law |
| Keywords: | Lump-sum payment; Deferred compensation; Reimbursement for previous premiums paid |
| Jurisdiction: | Federal |
| Cited Cases: | None |
| Cited Statutes: | I.R.C. §§ 3121(v), 3306(r) |
| Date: | 02/01/2001 |
The IRS may construe the lump-sum payment as payment of deferred compensation under I.R.C. §§ 3121(v) and 3306(r).
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