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What happens to a life insurance plan that does not meet the Code Section 79 nondiscrimination testing requirements?

April 26, 2017code happens Life Insurance meet nondiscrimination Plan requirements section Testing

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What happens to a life insurance plan that does not meet the Code Section 79 nondiscrimination testing requirements?

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If the life insurance does not satisfy the nondiscriminationn requirements, the $50,000 worth of life insurance that otherwise would be provided on a tax-free basis instead will be includible in the income of the key employees benefiting under the life insurance plan.