Certain employee death benefits payable by reason of death of certain terrorist victims or astronauts
(1) In general
(1)In general#
Gross income does not include amounts (whether in a single sum or otherwise) paid by an employer by reason of the death of an employee who is a specified terrorist victim (as defined in section 692(d)(4)).
(2)Limitation#
(A) In general Subject to such rules as the Secretary may prescribe, paragraph (1) shall not apply to amounts which would have been payable after death if the individual had died other than as a specified terrorist victim (as so defined).
(B) Exception Subparagraph (A) shall not apply to incidental death benefits paid from a plan described in section 401(a) and exempt from tax under section 501(a).
(2)(A)In general#
Subject to such rules as the Secretary may prescribe, paragraph (1) shall not apply to amounts which would have been payable after death if the individual had died other than as a specified terrorist victim (as so defined).
(2)(B)Exception#
Subparagraph (A) shall not apply to incidental death benefits paid from a plan described in section 401(a) and exempt from tax under section 501(a).
(3)Treatment of self-employed individuals#
For purposes of paragraph (1), the term “employee” includes a self-employed individual (as defined in section 401(c)(1)).
(4)Relief with respect to astronauts#
The provisions of this subsection shall apply to any astronaut whose death occurs in the line of duty.