jpod Posted April 27, 2015 Report Share Posted April 27, 2015 Rev. Rul. 2004-55 (along with a handful of private letter rulings) explains how you can give employees a choice of treating their employer-paid LTD coverage either as pre-tax or post-tax. (If post-tax, disability insurance proceeds would be paid to the employee on a tax-free basis.) The facts in the Rev. Rul. are that all employees eligible for the coverage would have the right to make the election. Is there any reason why this is a critical fact? For example, can you limit the right of the election only to those executives to whom you wish to give this right? Employer does not want to be burdened of having to explain and administer the election to hundreds of employees every year. Link to comment Share on other sites More sharing options...
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