Save time with our cheat sheets, fact sheets, checklists & books!

February 19, 2009

Death benefit exclusion

Your Guide

Print

Definition

Death benefits that can be excluded from income.

The beneficiary of a deceased employee (or former employee), who died before August 21, 1996, may qualify for a death benefit exclusion of up to $5,000.

The beneficiary of a deceased employee who died after August 20, 1996, will not qualify for the death benefit exclusion.

Referring Cite

IRC § 101(b)

Additional Helpful Information

  • The death benefit exclusion was repealed under the Small Business Job Protection Act of  1996, Pub. L. 104-188 ( SBJPA) , for participants  who died after August 20, 1996
  • This exclusion does not apply to IRAs
More

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules
Change