Federal Tax Considerations For Accident And Health Insurance Flashcards
How are excess funds in an employee’s health savings account (HSA) handled?
The funds can be carried forward to the next year
How are individually owned disability income benefits taxed once received by the insured?
Disability benefits are not taxed, they are received income tax free
In order to be eligible for coverage by an HSA, an individual must also be covered by what type of health plan?
High Deductible Health Plan (HDHP)
Under a fully contributory health plan, how are benefits received by the employee?
Income tax free
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
How long do short term disability groups plans pay benefits?
For a period of less than 2 years
In group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?
100%
How are benefits received by the business from a key person disability insurance?
Income tax free
How ar the benefits of group accidental death and dismemberment policy received?
Income tax free
What are the tax implications for employer contributions to Health Reimbursement Accounts?
Employer contributions are tax deductible as business expenses
What is the tax advantage of the employer paying premiums for its employees for disability income insurance?
Premiums are deductible as a business expense
