Retirement plan distributions to pay health insurance premiums.
Rev. Rul. 2003-62, IRB IRB
See: Industrial Revenue Bond 2003-25, June 23, 2003, holds that amounts distributed from a qualified retirement plan that the distributee elects to have applied to pay health insurance premiums under a cafeteria plan Cafeteria Plan
An employee benefit plan that allows staff to choose from a variety of benefits to formulate a plan that best suits their needs.
Also known as "cafeteria employee benefit plan" or "flexible benefit plan". are includable in the distributee's gross income.
The same conclusion applies if amounts distributed from the qualified retirement plan are used to reimburse re·im·burse
tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es
1. To repay (money spent); refund.
2. To pay back or compensate (another party) for money spent or losses incurred. a plan participant's medical expenses.
COPYRIGHT 2003 California Society of Certified Public Accountants
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion