EXTENSION AND MODIFICATION OF EXCLUSION OF AMOUNTS RECEIVED UNDER GROUP LEGAL SERVICES PLANS.

SEC. 4002. EXTENSION AND MODIFICATION OF EXCLUSION OF AMOUNTS RECEIVED UNDER GROUP LEGAL SERVICES PLANS. (a) Extension.— Section 120(e) of the 1986 Code is amended by striking out “1987” and inserting in lieu thereof “1988”. (b) Limitation on Value of Insurance Protection Which May Be Excluded.— (1) In general.— Section 120(a) of the 1986 Code is amended by adding at the end thereof the following new sentence: “No exclusion shall be allowed under this section with respect to an individual for any taxable year to the extent that the value of insurance (whether through an insurer or self-insurance) against legal costs incurred by the individual (or his spouse or dependents) provided under a qualified group legal services plan exceeds $70.” (2) Conforming amendment.— Subparagraph (A) of section 125(e)(2) of the 1986 Code is amended by inserting “or any insurance under a qualified group legal services plan the value of which is so includable only because it exceeds the limitation of section 120(a)” after “section 79”. (c) Effective Date.— The amendments made by this section shall apply to taxable years ending after December 31, 1987.