Federal Tax Considerations HI Flashcards
How are 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?
Contributions are tax deductible as business expenses
How are excess funds in an employees health savings account handled?
They can roll over
In group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?
100%
Under a fully contributory health plan, how are benefits received by the employee?
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
How are benefits received by the business from a key person disability insurance?
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
How are individually owned disability income benefits taxed once received by the insured?
Disability benefits are not taxed, received income tax free
How long do short term disability groups pay benefits?
Less than 2 years
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 much can a self employed sole proprietor deduct of his medical expense insurance?
Self employed sole proprietor can deduct 100 percent of the premiums
your individual premiums for medical expense or qualified LTC insurance are tax deductible if
They exceed 10% of your gross adjusted income
On a group disability income policy if the employer pays 60% of the premiums how much of the benefits payable is taxable to the employees
60%
If an employee pays 100% of the premium for group disability income, how much of the benefits paid are taxable?
None
