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?