Retirement and Other Insurance Concepts
How are premium payments made by an employer for employee group life insurance treated on the employer's corporate tax return?
Answer and explanation
Answer: D. Employer-paid group life premiums are tax-deductible business expenses under IRC § 162.Source: IRS Publication 15-B — Employer Deduction Group Life
More retirement and other insurance concepts questions
- Two clients need the same monthly survivor income. Why does the capital retention approach require a larger death benefit than capital liquidation?
- Under a group life insurance contract, what document evidence of coverage does each individual insured employee receive?
- Under a third-party owned policy, who may take a policy loan against the accumulated cash value?
- Under an Executive Bonus Plan (IRC Section 162), how are premium payments structured and taxed for the executive?
- Under IRC Section 79, up to what amount of employer-provided group term life insurance coverage is received completely tax-free by an employee?
- Under modern tax law (IRC § 7702), why are endowments that endow prior to age 95 no longer classified or taxed as standard life insurance?
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