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No latitude for pertinent info for the next million readers. (or anyone searching for, or coming upon Got a surprise W-2 from my pension administrator)
Poster finds answer.
Poster is contenious and demeaning of discussion (as usual)
another 'personal' thread
WOW. WTF is your problem?
It is certainly not about me, it's a tax question. And no I don't have a concrete answer - I was asking here as SURELY someone else has this same tax situation.
But clearly, your intent is to sideline the thread for your own foolish comments, as usual. Talk about an irrelevant post.
No latitude for pertinent info for the next million readers. (or anyone searching for, or coming upon Got a surprise W-2 from my pension administrator)
Poster finds answer.
Poster is contenious and demeaning of discussion (as usual)
another 'personal' thread
Nope, not just her, mine's the same way. Life insurance premium (on which I pay taxes) shows up in Box 1 of a W-2 from my former employer). The first year was 2017. I retired in 2016.
I don't know how else to explain it. It's a permanent benefit. For retirement. Paid on my behalf. Taxable.
Same here. I had the CHOICE to take the life insurance benefit (when I was working, we got the life insurance benefit but did not pay for it).
When I asked, "Well, why WOULDN'T I?" they said, "because you have to pay tax in the benefit in retirement". I took it. I figured if I croak, my daughter could pay off my mortgage or whatever. The premium is around $2400.
This year, by the way, I got a letter saying the value of the life insurance, which is around $300K+, dropped about $24K, but I could pay to make up the difference in value myself if I wanted. I declined. I believe the value of the life insurance diminishes each year now that I am 65 to some point where it won't exist anymore.
Same here. I had the CHOICE to take the life insurance benefit (when I was working, we got the life insurance benefit but did not pay for it).
When I asked, "Well, why WOULDN'T I?" they said, "because you have to pay tax in the benefit in retirement". I took it. I figured if I croak, my daughter could pay off my mortgage or whatever. The premium is around $2400.
This year, by the way, I got a letter saying the value of the life insurance, which is around $300K+, dropped about $24K, but I could pay to make up the difference in value myself if I wanted. I declined. I believe the value of the life insurance diminishes each year now that I am 65 to some point where it won't exist anymore.
Ours is simply part of the plan. No opt out as far as I know, but I’m fine with it. Ours diminishes each year by 25% of the original amount. In the 4th year it goes to 25% and stays there. It won’t ever go below that.
Ours is simply part of the plan. No opt out as far as I know, but I’m fine with it. Ours diminishes each year by 25% of the original amount. In the 4th year it goes to 25% and stays there. It won’t ever go below that.
We had the choice, but why not? For the small amount of paying a little tax on the premium, I have life insurance.
I also have a flat 35k death benefit on my pension.
Yes, and taxable fringe benefits ARE considered to be earned income, in every definition I have found.
I don't have a "tax advisor". I do my own taxes, but I do have two cousins that are CPAs and do taxes - I will check with them to be sure.
I agree that the image you attached to this post makes it clear (the "taxable fringe benefits" part) that yes, you can make a Roth contribution for the $2800. If your CPA cousin(s) have a different opinion, please post back what it is and why.
This is a helpful thread to "not just you". Sheesh, I learned something by reading here, even if it doesn't apply to me personally at this time. But I have family & friends who are newly retired or retiring soon, so it might come up in conversation with them. Thanks.
Ours is simply part of the plan. No opt out as far as I know, but I’m fine with it. Ours diminishes each year by 25% of the original amount. In the 4th year it goes to 25% and stays there. It won’t ever go below that.
The cost of employer paid life insurance up to $50K of insurance is tax exempt. Cost of amounts over $50K are taxable income.
The cost of employer paid life insurance up to $50K of insurance is tax exempt. Cost of amounts over $50K are taxable income.
Yes. I am well aware. I worked on payroll software programs for years, so as a part of my job I had to be able to calculate the imputed value to add it to the W-2s.
But I’ve never worked with it from a retiree fringe benefit perspective.
Last edited by ChessieMom; 01-28-2024 at 12:53 PM..
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