Ch 9 Federal Tax Considerations for Health Insurance Part II Flashcards
How are benefits received by the business from a key person disability insurance?
Income tax free
How long do short term disability group plans pay benefits?
The period of less than two years
How are excess funds in it employee health savings account (HSA) handled?
Carried forward to the next year
How are benefits of group accidental death and dismemberment policy received?
Income tax free
Under a fully contributory health plan, how are benefits received by the employer?
Income tax free
In order to be eligible for coverage for an HSA, an individual must also be covered by what type of health plan?
High deductible health plan a (HDHP)
in group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?
100%
What are the tax implications for employee contributions to health reimbursement account?
Employer contributions are tax deductible as business expenses
How are individually owned disability income benefits taxed once received by the insured?
Disability benefits are not tax; they received income tax free
What is the tax advantage of the employer paying premiums for its employees for disability income insurance?
Premiums are deductible as a business expense
Under what employer provided plan are the benefits taxable to employee in proportion to the amount of premium paid by the employer?
Disability income
