Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 08-17-2012, 09:05 AM
Junior Member
 
Join Date: Aug 2012
Posts: 1
Accelerated death benefit

If my employer has been paying for my life insurance, and I qualify for the accelerated death benefit, is this taxable, and at what rate? Thanx.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 08-17-2012, 04:28 PM
Moderator
 
Join Date: Oct 2010
Posts: 4,726
“If my employer has been paying for my life insurance, and I qualify for the accelerated death benefit, is this taxable, and at what rate?”-----> .Accelerated death benefits are monies paid to the terminally ill for surrendering their policies to their life insurance companies. A policy can also be sold to a viatical settlement company. Viatical settlement companies purchase the policies either for themselves or for investors.The accelerated death benefit or viatical settlement proceeds received by the terminally ill are generally tax free so you do not report them on your tax return. However, if the policy is sold to a viatical settlement company or the accelerated death benefits are paid by an insurance company under a long term care rider, and the accelerated death benefits are used to pay for long term care, and the proceeds exceed the IRS per diem limit and the actual costs of long term care, the excess is taxable on your tax return.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Death Benefit Recieved Art1 Income 2 02-08-2013 10:20 PM
accelerated life benefit help bergspyder Income 6 10-09-2011 09:30 AM
Death Benefit from Long Term Disability Taxable? Coadysmom Income 3 08-18-2011 12:14 PM
Death Benefit from Long Term Disability Taxable? tmtwi Income 1 07-09-2011 04:41 PM
Update Cost Basis upon Death of Co-Owner? dldaven Capital Gains 0 10-10-2009 05:44 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning