Insurance and tax questions

1,035 Views | 3 Replies | Last: 1 yr ago by Casey TableTennis
Definitely Not A Cop
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AG
So I know that my company-provided health insurance gets paid for with pre-tax dollars. My question is, if my company doesn't offer certain insurance options like long term disability or life, is there a way to still allocate pre tax dollars towards a third party plan?
gigemhilo
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AG
I don't know if you can or not, but why would you want to? If you use pre-tax dollars on any life or disability policy, then the proceeds from those policies would be taxable to you when you receive them. If you pay for those policies post-tax, then they will not be taxable income to you when you receive them.
Sims
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AG
... based on current law.
Casey TableTennis
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AG
I'm not aware of a way, but would be I'll-advised anyway. Paying for DI with pre-tax $ means the benefit is taxable. Paying with after-tax money makes the benefit is tax-free. Given DI is relatively inexpensive in most cases, the potential future tax benefit is far superior to today tax savings on premiums.

Anytime I see company paid DI, I'm exploring if we can have EE pay, or elect to have the premium imputed, or amend benefits going forward.
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