Federal Tax Considerations for Accident and Health Insurance

For group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?

100%

Under which condition would an employee's group medical benefits be exempt from income taxes?

An employee's group medical benefits are generally exempt from taxation as income.

Concerning group Medical and Dental insurance, which of the following statements is INCORRECT?

Employee benefits are tax deductible the year in which they were received

How do employer contributions to a Health Savings Account affect the insured's taxes?

The employer contributions are not included in the individuals insured's taxable income.

An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?

They are tax deductible

All of the following are true regarding Key Employee Disability Income EXCEPT

Benefits are taxable to the employer

Under which of the following employer provided plans are the benefits taxable to an employee in proportion to the amount of premium paid by the employer?

Disability income

Other than for a qualified life event, when can a change be made in benefits for a Flexible Spending Account (FSA)?

During the open enrollment period

Which of the following is INCORRECT concerning taxation of disability income benefits?

If paid by the individual, the premiums are tax deductible

The benefits received by the business in a Disability Buy-Sell policy are

Income tax free

Which of the following is NOT true regarding a FSA

It does not have limits on contributions

Under what condition are group disability income benefits received by an employee NOT taxable as income?

When the benefits received are equal or less than the employee's percentage of the contribution

HRA employer contributions

are tax deductible