Posted: Mon Jul 16, 2007 5:34 am Post subject: If an employer buys a policy for the employee.
If an employer buys a policy for the employee to use at retirement is there taxes to be paid?Thanks, -Mark lewis _________________ Register Now to have your Insurance queries solved.
Hi there, if you buy a tax-qualified pension plan you may receive immediate tax benefits from the IRA department. Tax-qualified pension plans provide both the employer and the participating employees with tax deduction. However, if you purchase a non-qualified deferred compensation plan you may not receive any tax benefit until the retirement benefits are paid to the receivers.
Hope this information will help you to clear some of your doubts. And if you have any further query, please, do not hesitate to ask at the forum.
Posted: Mon Jul 16, 2007 10:33 am Post subject: benefits for both..
An employer sponsored retirement-plan offers benefits for both the employer and the employee. It is a big way of retaining employees where the employer is offered some deductions. So tax-adjustment benefits are there for both too! Fatman
Posted: Mon Jul 16, 2007 11:31 am Post subject: ..good way of doing it!
Hi there!
Lemme assure you that ample tax advantages come with almost all retirement plans these days!
The most known advantage being the money which is offered by the employer through this account is not considered as the employee's income.
The employer is subject to tax-deductions for these amounts and the amounts may differ owing to the nature of the plans offered. These are the employer's Pre-tax contributions.
This plan money gets invested and never gets charged on its increment each year. Upon withdrawal this amount would be taxed under the income head. Hope this information would help you to some extent. Regards, Evan
Posted: Mon Jul 16, 2007 11:50 am Post subject: two options for you!
My friend, you also have an option at this one. You may choose to opt between Roth IRA & Roth 401(k). These two plans have some benefits in the form of monetary offerings, which are considered as taxable income initially, but later on gets free of any such taxation. Now its up to you to pick the right one for yourself. Thanks for raising these important issues at the financial forums. Abbey Kenton _________________ Register Now to have your Insurance queries solved.
