Which of the following represents a taxable fringe benefit?

The correct choice is the option that identifies life insurance benefits exceeding $50,000 as a taxable fringe benefit. This is due to the IRS rules stating that if an employer provides group-term life insurance coverage exceeding $50,000, the value of the coverage above that threshold is considered taxable income to the employee. The employer must report this excess benefit on the employee's W-2 form, and it will be subject to income and payroll taxes.

In contrast, health insurance premiums paid by an employer are typically not considered taxable income to the employee and are often provided as a tax-free benefit. Employer contributions to a 401(k) are also not treated as taxable income for the employee when made; instead, they are tax-deferred until withdrawn in retirement. Meal reimbursements can be provided under certain conditions tax-free, particularly for business-related meals, as long as they adhere to IRS regulations regarding substantiation and business purpose.