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Is it possible for COBRA premiums to be paid pre-tax, via the premium


Guest B Whit

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Is it possible for COBRA premiums for a qualifed beneficiary to be paid for through the premium coversion portion of the cafeteria plan. For example: Employee is paying the COBRA premiums for is ex-wife or employee paying COBRA premiums for aged out dependent.

I thought I had read that this would be allowable under a new regulation beginning next year????

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Guest llerner

I also have read something to that effect and have looked throughout in the last few days. The only connection I have found is medical reimbursement plans being "cobrable"-

I am specifically and personally interested because while waiting for new benefits to kick in, I have been paying $530/month for COBRA. I know that I read somewhere that former/current employees paying COBRA could use employer's section 125 for tax savings. My former (over 1,000 employees) company has not ever heard of it. Anyone out there know? TAX time is upon on and a CPA somewhere must have advised their client of the tax benefits of this new law (if it exists). I know I read something about section 125 and COBRA premiums being a new development. Anyone else?

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  • 3 weeks later...

Under the code, any contribution to a premium only plan can only be for an employer-sponsored plan. Therefore, COBRA payments are not allowed because your current company has nothing to do with the prior plan you were in.

I specialize in Section 125 plans & have run into this question many times- I wish the answer was different!

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My understanding is that you can pay COBRA premiums pre-tax if the COBRA beneficiary is a dependent on your taxes. Example: your child who is too old to be on the plan but still dependent on you (& you are claiming that child on your taxes). An ex-spouse's COBRA premiums could not be taken pre-tax b/c your ex isn't going to be included on your taxes anymore.

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