PS 58 cost refers to the government-issued table used to calculate the annual cost of life insurance protection in certain split-dollar and employer-provided life insurance arrangements for tax reporting purposes. Named after an old IRS ruling, the PS 58 (and successor Table 2001) rates assign a value to the pure death benefit at each age, separate from any cash value accumulation. The imputed PS 58 cost is generally treated as taxable income to the insured or employee, while the employer or sponsor may deduct premiums under specific rules. Although modern practice often relies on insurer one-year term rates instead of PS 58 in many situations, the term remains shorthand for valuing the economic benefit of life insurance coverage provided in qualified and nonqualified plans.

In advanced planning and executive compensation design, accountants and attorneys reference PS 58 cost or Table 2001 when setting up split-dollar plans, Section 162 bonus arrangements, or other employer-paid insurance benefits. Software and plan documents incorporate the appropriate rates to compute annual taxable benefits for participants. Advisors coordinating these cases with corporate clients may not perform the calculations personally, but they should understand that PS 58 cost represents the term value of the death benefit, not the full premium. When reviewing older plans, practitioners sometimes uncover legacy PS 58-based calculations that need updating. Clear explanation of PS 58 cost helps executives understand why modest amounts of taxable income appear on their W-2s in connection with employer-provided life insurance coverage.