Health Reimbursement Account- Term Life?

Technical topics regarding tax preparation.
#1
taxcpa  
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Client is the sole employee of a C Corporation and has established an HRA.

HRA is reimbursing the employee for Medicare premiums, medicare supplemental coverage, and long term care insurance.

Client also has a term life insurance policy, established some years ago, well prior to their setting up the C Corp and HRA.

Is it possible to reimburse the premiums through the HRA?

If so, that would make the premium deducible to the C Corp and taxable to the client to the extent of value of over $50K coverage. Social security and medicare taxes would apply. Haven't run the numbers yet, but the idea of turning a non deducible cost into a deducible one is always worth a look.

Any HRA experts out there?
 

#2
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I am not an HRA expert but I suspect the issue you would have is that the policy is not carried directly or indirectly by the employer.
 

#3
sjrcpa  
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I'm no HRA expert either, but those are for health care costs. Life insurance is not a health care cost so I think no to your idea.
 

#4
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Deductible life insurance premium would be an insurance agent's dream...
Steve
 


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