PhilB Posted March 28, 2002 Share Posted March 28, 2002 Is anyone aware of a voluntary LTD tax-free benefit option available under new Private Letter Rulings and Treasury regulations? Link to comment Share on other sites More sharing options...
mroberts Posted March 28, 2002 Share Posted March 28, 2002 Whenver employee premium are paid after tax, the LTD benefit is not taxable. Link to comment Share on other sites More sharing options...
PhilB Posted March 28, 2002 Author Share Posted March 28, 2002 Yes, I was hoping someone might have seen a recent (in the last year or so) PLR related to it........I've been searching through the IRS archive which is a tad cumbersome to say the least. Link to comment Share on other sites More sharing options...
Guest Maple1 Posted March 28, 2002 Share Posted March 28, 2002 This may be the PLR you remember PLR 200204021. Link to comment Share on other sites More sharing options...
GBurns Posted March 29, 2002 Share Posted March 29, 2002 Why would a PLR be of importance relative to the explicit wording in the Treas. Regs.? A search for relevant PLRs should be very simple not tedious. The UIL is 105. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction) Link to comment Share on other sites More sharing options...
PhilB Posted April 2, 2002 Author Share Posted April 2, 2002 Thanks Maple 1, I think this might be it, though it doesn't reveal anything regarding the taxibility or non-taxability of this benefit that isn't already out there. GBurns, I am sure that I am not using a very effective method for searching through the PLRs. I don't know what the term "UIL" refers to. Thanks. Link to comment Share on other sites More sharing options...
PhilB Posted April 4, 2002 Author Share Posted April 4, 2002 The PLR (200204021 - October 22, 2001), which you referenced, states that the IRS finds that employer-paid LTD premiums included in an employee's gross income makes the LTD benefit payments nontaxable. The ruling confirms the IRS's position that premiums do not have to come from an employee's wages on an after-tax basis in order for the benefit payment to be nontaxable to the employee. That is, the employer can pay the premium on behalf of the employee as long as the premium amount is included in taxable (gross) income for that employee. That being the case (employer paying the premium), can this still be set up as a voluntary benefit due to the fact that the employer contribution would be considered taxable gross income? Can the employee waive the coverage if they don't want it? Or will that depend on the carrier? Link to comment Share on other sites More sharing options...
Guest Maple1 Posted April 4, 2002 Share Posted April 4, 2002 Employees can waive the benefit, however, if a significant number do so, the carrier may alter the terms of its offer going forward. Link to comment Share on other sites More sharing options...
GBurns Posted April 5, 2002 Share Posted April 5, 2002 UIL is Uniform Issue Listing. This is a listing of all the Code sections affected by a ruling etc. In many of the research tools this is one of your good searching keys. If you are using the IRS site foe Written Determinations ( their name for PLRs) you are given 2 choices, Number or UIL. If you use UIL the site sorts all the PLRs by code section. In this case you would be looking for 105 and will get all the PLRs (1999 to Present). You should not need to go back beyond 1999, if you do let me know and I will help you get it. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction) Link to comment Share on other sites More sharing options...
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