Guest LOhmer Posted August 25, 1998 Posted August 25, 1998 I recently read an article regarding LTD Insurance policies in qualified plan. The article made the point that the premium would taxable to the participant. I have not been able to locate any IRS reg or publication on this issue. I assumed the author is making an interpretation from how PS58 cost for Life Insurance is handled. However their is a table to calculate the taxable portion of the Life Insurance premium. If anyone has any knowledge of an IRS publication on the taxability of the LTD Premium, I would appreciate any help.
Guest BobParks Posted August 26, 1998 Posted August 26, 1998 Tax Facts 1 Q. 328 "To what extent can a qualified plan provide life or health insurance benefits for its participants?" may have the answer you are looking for.
LCARUSI Posted August 27, 1998 Posted August 27, 1998 Just a comment... If I were the participant, I would want the premiums to be taxable. It seems to me that if they are not taxable, then any benefit payments I receive under the LTD Plan WOULD be taxable - and that could be a disaster from a tax perspective.
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