I work for a small employer who has a supplemental life insurance plan. They take employee contributions for this plan after-tax. I would like to switch it to pre-tax but have seen conflicting information about whether or not supplemental life insurance plans qualify. Please clarify.

First, the insurance must be group term life, no benefit which build value and carries it forward may be included in a Section 125 Plan. Then the premiums are only eligible for pre-tax treatment (IRC, Section 79) for up to a total of $50,000.00in benefit. This number include any amount provided by the employer. For example, the employer provides a base benefit of $30,000.00 in group term life, the employee could purchase an additional $20,000.00 of coverage and their premium could be pre-tax through a Section 125 Plan. However, no amounts above $50,000.00 of coverage are eligible. So depending on how rich your basic benefit is, you may or may not be able to pre-tax the additional premium.

Does anyone know of any good web sites that thourghly explain how imputed income calculations should be done for employee and dependent group term life insurance?

What imputed income?