Ch. 8 - Fed Tax Implications Flashcards
Q: How are excess funds in an employee’s health savings account (HSA) handled?
A: The funds can be carried forward to the next year
Q: In group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?
100%
Q: Under what employer-provided plan are the benefits taxable to an employee in proportion to the amount of premium paid by the employer?
Disability Income
Q: How are the benefits of group accidental death and dismemberment policy received?
Tax free
An insured is covered by a partially contributory group disability income plan that pays benefits of $4,000 a month. If the insured pays 25% of the monthly premium, how much of the monthly benefit would be taxable?
$3000
In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received?
No tax
