Insurance Planning Flashcards
(114 cards)
1
Q
4 Elements of Insurable Risks
A
1) Sufficiently large number of homogeneous exposure units
2) Loss produced by risk must be definite and measurable
3) Loss must be fortuitous or accidental
4) Loss must not be catastrophic to the insurance company
2
Q
Advantages of Self Insurance
A
1) Avoid cost associated with commercial insurance
2) Reserves held for claims can be invested in short-term MMs, and earnings can offset program costs.
3
Q
Disadvantages of Self Insurance
A
1) Can leave company exposed to catastrophic loss
2) Company must duplicate services of insurance company
3) Company may have to pay income taxes on reserves held at year end
4
Q
When a small company self-insures up to a certain point but acquires insurance to pay for claims above that, this is called _____.
A
Stop loss coverage (also partially self-funded plan or cash flow plan)
5
Q
5 Methods to Control Losses
A
1) Avoidance
(don’t buy house with a pool)
2) Diversification
(duplicate assets across locations)
3) Risk Reduction
(sprinkler or burglary systems)
4) Retention
(deductibles & self insurance)
5) Transfer
(purchase insurance)
6
Q
For risks that involve high loss severity and low loss frequency, the most suitable technique(s) is/are probably _____.
A
Risk Transfer (i.e. insurance)
7
Q
For risks that involve high loss severity and high loss frequency, the most suitable technique(s) is/are probably _____.
A
Avoidance (because premiums would be very expensive)
8
Q
For risks that involve low loss severity and high loss frequency, the most suitable technique(s) is/are probably _____.
A
Retention and reduction (because high frequency will make a transfer costly)
9
Q
For risks that involve low loss severity and low loss frequency, the most suitable technique(s) is/are probably _____.
A
Retention
10
Q
The principle underlying most insurance contracts where the insurer seeks to reimburse the insured for approx. the amount lost (but no more, no less) is called _____.
A
Principle of indemnity
11
Q
A right or relationship with regard to the subject matter of an insurance contract such that the insured will suffer financial loss from damage, loss, or destruction of that subject matter is called _____.
A
Insurable Interest
12
Q
Insurable interest must exist at the time of _____ for property/casualty insurance.
For life insurance, it must exist at the time of _____.
A
Loss; issue
13
Q
When only a president, VP, or secretary can alter a contract, this is called _____.
A
Waiver Provision
14
Q
_____ is represented by the fact that an insured may pay a large premium and never receive proceeds, whereas another insured may pay only a small premium and receive a large settlement. In other words, the outcome is affected by chance.
A
Aleatory
15
Q
The process by which an insurer takes over the legal rights its insured has against a responsible third party is called _____.
A
Subrogation
16
Q
Medicare Part A
A
-Hospital Insurance (think Ambulance)
-For everyone 65+ who is also eligible for SS benefits
-Disabled workers at any age
-Disabled widows/widowers age 50+
-Free to anyone who has paid Medicare taxes for more than a decade (or married to someone who has)
17
Q
Medicare Part B
A
-Same eligibility as Medicare Part A
-Health Benefits (think Benefits)
-Pays 80% of the balance of approved charges
-No stop loss applies
-Unique Coverage: doctor-administered drugs, free preventive care services,
-Exclusions: Dental, Vision, most immunizations (except yearly flu shot), prescription drugs
-Charged a monthly premium based on income (IRMAA- Income Related Monthly Adjustment Amount)
-Will be penalized if you do not sign up at 65, with one primary exception
18
Q
Even if you are working and have health benefits, you need to sign up for Medicare Part A at age _____.
A
65
19
Q
Once covered under Medicare Part A, you lose the ability to _______ an HSA plan.
A
Contribute to
20
Q
The one circumstance where people can avoid signing up for Medicare Part B at age 65 is _____.
A
When they have health insurance through their own or a spouse’s current job at a workplace with 20+ employees.
21
Q
Medicare Part C
A
-AKA Medicare Advantage
-Covers Parts A and B (A+B=C)
-Issued through a private Company (C for Company)
-May cover vision, dental, or other items typically excluded
22
Q
Medicare Part D
A
-D for Drugs
-Must have Part A and B to get Part D
23
Q
HMO’s
A
-Primary care doc is the gatekeeper
-Must use doc affiliated with the HMO
-Monthly fee paid to provider
24
Q
PPO’s
A
-Generally paid on fee-for-service basis
-Can go to doc outside of network (but generally at reduced benefits)
25
COBRA
-Small companies (fewer than 20 EE's for at least half of prior year) are exempt
-Qualifying events based on life events
26
HSA's
-Can be used to pay for Medicare, prescription drugs, COBRA, LTC premiums, health plan coverage while receiving unemployment
-CANNOT pay for Medigap premiums
-Can transfer upon death to spouse on tax-free basis (spouse can treat as his/her own account)
27
Where is Medicare coverage not available to cover medical costs?
Outside of the US and limited areas of Mexico, Canada, or the Caribbean
28
Types of Disability Insurance
-Own Occupation (best)
-Any Occupation/Modified Any Occupation/Modified Own Occupation
-Split Definition
-Loss of Income
29
Disability polices cannot be modified to higher amounts or used in 1035 exchanges.
True
30
Provisions of Disability Insurance
-Noncancellable: keep the policy in force by paying fixed premium; normally renewable to age 65 or retirement
-Guaranteed Renewable: keep the policy in force by paying premium (which may increase based on class)
-Conditionally Renewable: Allows noncancellable or guaranteed renewable to continue beyond age 65 (up to 2 years if insured is still an active EE); normally in all DI policies
31
Riders of Disability Insurance
-Residual Disability (Proportional): Benefit is payable in proportion to the insured's reduced earnings; usually in an own occupation policy
-Social Insurance Substitute (SIS): The SIS portion is reduced by the amount of any Social Security Disability benefit received (NOTE: the base amount of the policy is NEVER reduced)
32
Disability Insurance: Taxation of Premiums and Benefits
If EE owns the contract and pays the premium...
-Premiums are not tax deductible
-Benefits are tax-free to the EE
33
Disability Insurance: Taxation of Premiums and Benefits
If EE owns the contract and ER pays the entire premium (using a Section 162 arrangement)...
-Premiums are deductible by ER as a bonus
-Premiums are taxed as a bonus to EE
-Benefits are tax-free to the EE
34
Disability Insurance: Taxation of Premiums and Benefits
If EE owns the contract and ER pays the entire premium under a Salary Continuation Plan...
-Premiums are deductible by ER
-Premiums are not currently taxed to the EE
-Benefits are taxable to the EE
NOTE: with shared premiums (EE and ER pay), benefits will be partially tax-free
35
Disability Insurance: Taxation of Premiums and Benefits
For Partnership and S Corp Shareholders (greater than 2%)...
Partnership/S Corp can deduct premiums paid for coverage; this is based on premium cost being included in taxable income of partner/shareholder; proceeds are excludable from taxable income.
36
Most LTC Policies qualify for the same tax treatment as medical insurance policies...premiums are _____, and benefits received are not _____.
Deductible; taxable
37
Chronically Ill Person: unable to perform at least how many activities of daily living (ADLs) and for what period?
2 activities; at least 90 days
38
The ideal compromise between cost and coverage of a LTC policy is coverage in the ______ year range.
5-7 years (allows chance to qualify for Medicaid after 5 years with no assets)
39
LTC: premiums paid and unreimbursed expenses for qualified LTC services are OR are not deductible as itemized medical expenses.
Are deductible (subject to dollar amount limitation that increases with the age of the insured)
40
LTC: Skilled Nursing Coverage
-First ______ days paid in full by Medicare.
-Days ______ require a copayment.
-After _____ days of coverage, patient must pay full cost.
-First 20 days paid in full by Medicare.
-Days 21-100 require a copayment.
-After 100 days of coverage, patient must pay full cost.
41
Miller Trusts and Medicaid
The MT can be used as a place for income over Medicaid's limit so that such income does not count against the applicant for Medicaid eligibility. NOTE: MTs are NOT for assets; just income (such as SS). When the Medicaid beneficiary dies, state is named as remainder beneficiary of trust.
42
A health FSA (can/cannot) offer both a carryover and a grace period.
Cannot
43
Dependent Care FSA's can be used for eligible expenses for care of...
-dependent children under age 13
-dependent (spouse or child) of any age who is mentally or physically incapable of caring for self
44
Group Term Life Insurance & Taxation
What's the magic number/threshold, and what happens if the plan is discriminatory?
-If EE's total coverage is less than $50k, EE is not taxed on premiums paid by ER.
-If EE's total coverage is more than $50k, EE is taxed on cost of coverage over $50k less amount EE paid.
NOTE 1: premium is deductible by ER.
NOTE 2: If plan is discriminatory, each key EE must include greater of actual cost of insurance or cost determined from Table 1. Key EE's lose their $50k exemption.
45
Group Term Life Insurance coverage is tax free for spouse up to what amount?
$2,000
46
Group Term Life: when coverage ceases, an EE has the right to convert to an individual policy in what amount? And, is proof of insurability required?
Same amount as what EE had; proof of insurability is not required.
NOTE: must be converted to a permanent insurance plan (not term)!
47
Carve Out Plans:
1) who are they offered to?
2) what type of policies?
3) are they portable?
4) are they deductible by ER?
1) highly-compensated EE's
2) individual policies
3) yes
4) no
48
IRC Section 162 Bonus Plan
1) who purchases and owns the insurance?
2) who pays the premiums?
3) are premiums deductible to ER?
4) are premiums taxable income to EE?
1) EE
2) ER
3) Yes
4) Yes
49
Group Disability- if noncontributory...
1) can ER deduct the premium?
2) are benefits received by EE taxable?
3) what happens in a partially contributory plan?
1) yes
2) yes
3) tax is based on ratio of EE contributions to total premiums paid
50
Disability benefits received from Social Security generally have what effect on group disability benefits?
reduce
51
Social Security disability benefits are payable beginning with the ____ full calendar month of disability, and disability must be expected to last at least _____ months.
Sixth (i.e. 5-month waiting period); 12
52
Tax Free Benefits to EEs include what for each of the following:..
1) Insurance premiums
2) ER provided daycare
3) company car
4) transportation passes
5) parking
6) occasional
7) company products
8) services
1) Group Life/up to $50k
2) value of qualifying daycare provided by ER
3) company car for working conditions only
4) commuter highway vehicle and transit passes
5) ER provided parking spots or subsidized parking
6) overtime meal money, cab fare, theater or sporting event tix
7) value of discounts on products if it does not exceed ER's gross profit percentage
8) services- limited to 20% discount on selling price for customers
53
Is long-term care insurance a qualified benefit under a cafeteria plan?
No, but it may be paid through an HSA.
54
Taxability of Dental vs. Vision Insurance
Dental: benefits are tax free (like health insurance)
Vision: benefits are generally taxable as EE compensation
55
For term insurance, the _____ provision allows the policy owner to exchange a term contract for permanent insurance within a specific time frame and without evidence of insurability.
Convertibility
56
Universal Life: Death Benefit Alternatives
-Level Death Benefits: death benefit will increase when _____.
-Increasing Death Benefit: death benefit increases _____.
Level Death Benefits (aka Option A): death benefit will increase when cash value exceeds certain benchmarks.
Increasing Death Benefit (aka Option B): death benefit increases proportionally (all along). "B receives Both death benefit and cash value."
57
What's unique about Variable Universal Life?
-policy owner directed investment options
-cash value is not guaranteed
-cash value is put in a separate account (won't be frozen)
58
What to remember about Endowment Contracts on the exam!
Endowment Contracts are WRONG ANSWERS on the exam!
59
Second-to-Die/Survivorship Life
-Main use
-Premium Cost
-What forms?
-Main Use: Liquidity to pay fed estate taxes at death of second spouse
-Premium Cost: significantly lower than separate policies
-Can be in form of whole life, universal, VUL, or term.
60
Types of Life Insurance Riders
-Disability Waiver of Premium:
-Guaranteed Purchase Option: Purchase add'l insurance at specified intervals in specified amounts
-Accidental Death (double indemnity): 2x standard death benefit if accidental
61
The most common way to evaluate insurance companies is by looking at their _____.
Financial Strength
62
Nonforfeiture Options:
Cash Option: surrender anytime for CV less indebtedness; delay clause applies
Reduced Amount Of: Reduces face amount of policy; no add'l premium due
Paid Up Term/Extended Term: policy continues using CV to fund a term policy; may trigger higher mortality table
63
Settlement Options (on death of insured):
Cash: take a lump sum
Interest Only: Insurer retains proceeds temporarily and interest is paid; gives bene time to consider options
Installments for Fixed Period*
Installments of Fixed Amount*
Life Income Options (similar to an annuity settlement)
*Installment options sometimes called spendthrift options. Creditors cannot get to the proceeds.
64
Dividend Options:
Cash
Reduction of Premiums
Accumulate with Interest
Purchase Paid-Up Additions (Added to policy face value)
One-Year Term Insurance (dividends fund this equal to policy's base cash value)
65
Which life insurance policies are generally best suited for saving for retirement?
Variable (offer higher potential returns)
66
Which life insurance policy is best for funding a buy-sell agreement?
Variable life (with the CV plus growth potential)
67
If mistakes are made in the underwriting process regarding age, will the policy be voided?
No (benefits may adjust up or down accordingly)
68
Remember the importance of prompt action as a CFP in the insurance underwriting process.
I.e., what happens if a client dies while you are waiting on something?
69
Taxation of Whole Life Insurance
Cash value above cost basis at the time of surrender is taxed as _____.
Taxation of Whole Life Insurance
Cash value above cost basis at the time of surrender is taxed as ordinary income.
70
Taxation of Whole Life Insurance
Dividends paid are generally a return of unused premium and (are/are not) income taxable.
Taxation of Whole Life Insurance
Dividends paid are generally a return of unused premium and ARE NOT income taxable.
71
Modified Endowment Contracts
When do the MEC rules apply?
1) contract was entered into on or after 6/21/88
2) contract fails to meet the seven pay test (i.e. too much premium is paid up in the first 7 years)
NOTE: a single premium policy is always an MEC for CFP exam purposes!
72
True or False:
A policy that first passes the seven pay test can later become an MEC if there is a material change to the policy.
True
Example: an increase in death benefit under the contract.
73
Remember: once an MEC...
Always an MEC.
74
Taxation of MECs:
-Distributions...
-10% penalty applies if...
-Dividends are taxable when...
-Death benefit is (includable or excludable) from income.
Taxation of MECs:
-Distributions are taxed under the interest-first rule (LIFO).
-10% penalty applies if distribution received before age 59-1/2 (and not disabled)
-Dividends are taxable when received in cash or to reduce premiums; and when retained by insurer to repay a policy loan.
-Death benefit is EXCLUDABLE from income.
75
The only difference between MEC and non-MEC contracts is...
The only difference between MEC and non-MEC contracts is that loans and withdrawals do not have a tax effect on non-MEC contracts.
76
General Rule: life insurance death proceeds are excluded from federal income taxation.
Transfer for Value Rule: If a policy is transferred from one owner to another for valuable consideration (i.e., money), the income tax exclusion is lost, except for what situations?
The main exceptions to the transfer for value rule:
-sale/transfer to the insured
-sale/transfer to the partner or partnership in which the insured is a partner
-sale/transfer to a corporation in which the insured is a shareholder or an officer
-sale/transfer to a spouse due to a divorce
77
Transfer for Value: the proceeds in excess of _____ are taxable as ordinary income.
Proceeds in excess of consideration paid for policy plus any premiums paid by the owner (these items form the new owner's basis).
78
Typical Violations of the Transfer for Value Rule
-Corporation changes its buy-sell agreement from stock purchase to cross purchase plan and transfers company insurance policies to stockholders other than the insured.
-Corporate key person life insurance policy is transferred to the insured's family member or irrevocable trust to keep proceeds out of the insured's estate.
79
Transfer for Value with Spouses & Children
Which one(s) cause a taxable gift and/or transfer for value?
-A gift of a policy to a family member
-A sale of a policy to a family member (other than the insured)
-A gift of a policy to a family member causes a taxable gift but not a transfer for value.
-A Sale of a policy to a family member (other than the insured) does not cause a taxable gift but does cause a Transfer for value. (think S and TV)
80
Annuities: What are the options, and which pay more?
Pure Life (Single Life): provides the maximum income per dollar of principal sum.
Period Certain and Life: lasts for lifetime of annuitant; certain # of payments generated to the beneficiary
Refund: payout is at least equal to cost of annuity.
Specified Period (Term Certain): payout over X years (not lifetime).
Specified Income (Dollar Certain): fixed amount per month.
81
Annuity Taxation
LIFO (last in, first out)
Withdrawals are taxable interest to the extent that the cash surrender value exceeds the investment.
Withdrawals prior to 59.5 are subject to income tax + 10% premature withdrawal penalty.
82
Section 1035 Exchanges
IRC provides for the following tax-free exchanges:
-Life insurance policy for _____ or ______.
-Annuity contract for _____.
-Life insurance policy for another life insurance policy OR for an annuity contract. (NOTE: life insurance policies must have same owner and insured).
-Annuity contract for another annuity contract. (NOTE: contracts must have same owner and annuitants).
83
Accelerated Benefit Rider
For the following scenarios, how do you qualify, what is payable, and how is it taxed?
Terminally Ill
Chronically Ill
Terminally Ill (qualifying medical conditions or 2 years or less remaining): pays portion of policy's death benefit (thus reduces death benefit); excluded from income
Chronically Ill (Certain disabilities, certain disabilities, or supervision due to cognitive impairment): qualifies for limited exclusion ($390/day) if payments go toward LTC services.
84
Viatical Payments (definition and taxability)
Sale of terminally ill person's life insurance policy to a business that specializes in such transactions.
Amount paid is tax-free, but unused sale money is included in the person's estate. The viatical company pays tax on the gain (death benefit less their payments/basis).
85
Life Settlement (who is involved, what are tax implications)
Insured is not terminally or chronically ill; usually over age 65; participants in this transaction are taxed
NOTE: life settlements are the only time that life insurance is taxed at capital gains rates!
86
Buy-Sell Agreements: May be structured in one of two ways...
1) Stock Redemption/Entity Purchase: the corporation buys the policies on the stockholders
2) Cross-Purchase/Stockholder Purchase: each stockholder buys insurance on the other stockholders
87
Formula for how many policies are needed in a cross-purchase agreement...
N*(N-1), where N=number of shareholders
ex: 3 shareholders would require 6 policies
88
In which buy-sell agreement does the beneficiary not receive a step-up in basis?
"Stock Redemption/Entity Purchase" life insurance- the company owned the policy, so it gets the insurance benefits and buys the deceased's share.
Remember: only people, not corporations, can participate/benefit from a step up in basis
89
Eight General Exclusions Apply to ALL Homeowners Insurance Forms
HINT: OPENN WIF
OPENN WIF
Ordinance or law
Power failure
Earthquake
Neglect
Nuclear Hazard
War
Intentional loss
Flood
90
Homeowner's Insurance: Section I
A
B
C
D
A: Abode (dwelling + attached structures plus construction materials)
B: Buildings/Barn (structures separated from the dwelling by a clear space)
C: Contents (including personal property owned or used by insured while anywhere in the world); excludes motorized land vehicles, aircraft, property of boarders/tenants or property in an apartment rented or held for rental of others.
D: 'Demnity (Indemnity)
91
Homeowner's Insurance: Section II
E
F
E: Enemies (comp liability insurance)
F: First Aid (Medical Payments to others- not your own family members)
92
How does Homeowners Coverage C apply to property of roomers/boarders and property in an apartment rented to others?
It excludes both.
NOTE: Landlords can buy a "landlord's furnishings" endorsement that will cover the property in a rented room
93
For HO Insurance, in Coverage A (Dwelling), is land included or excluded from coverage?
Land is excluded.
94
For HO Insurance, in Coverage C (Personal Property/Contents), is this the best place for coverage of valuable personal property (jewelry, golf equipment, coins, etc.)?
No, the best place for coverage of these items is in a scheduled personal property floater. Coverage C has limits.
95
For HO Insurance Coverage D (Loss of Use), what living expenses are covered when there's damage to the property?
Only additional living expenses (i.e. only the increase in living expenses incurred by the insured).
96
Order of perils coverage from least to most comprehensive...
Basic: WHARVVES/FLT
Broad: Basic + RAFF (Rupture, Artificial electricity, Falling objects, Freezing of plumbing)
Open Form: Covers anything except what is specifically excluded
97
Which is more comprehensive: HO-2 or HO-3?
HO-3, as it is Open Form (vs. broad form for HO-2).
98
Differences between HO-4 and HO-6 Insurance:
HO-4 is for renters and has broad coverage for contents and loss.
HO-6 is for condo owners and has open coverage for contents and broad coverage for loss of use. HO-6 also has some coverage for dwelling and other structures, including carpeting and cabinetry. Condo owners also get loss assessment coverage to protect against assessments made by the condo association due to loss to the collectively owned property.
99
80% Rule: when the amount of insurance is less than 80% of the dwelling's replacement cost, the insurer will pay the greater of the following...
Actual cash value, less deductible
Replacement cost formulas:
Amount of Insurance Required= replacement cost x co-insurance
[(Insurance Carried)/(Insurance Req'd) x Loss] - Deductible = Amt Paid by Insurance
100
Personal Auto Policies (PAPs) usually cover private passenger automobiles and exclude what?
Excludes vehicles rented to others, as well as vans and pickups used for transport or delivery of goods and materials (all of which require a commercial policy).
101
For PAPs, a covered auto includes any vehicle on the policy declarations, plus three other categories of vehicles...
-Newly acquired autos: must notify insurance company within 14 days of purchase to include part D coverage)
-Trailers
-Temp substitute vehicles: coverage only applies to parts A, B, and C (liability, medical, uninsured motorist)
102
Who is covered on a PAP?
-Named insured and spouse* (living in same household)
-Family member living in same house
-Anyone using your auto with your permission
*if spouse ceases to be a resident of same household, he/she is still covered until the earliest of the following:
-end of 90 days following spouse's change of residency
-effective date of spouse's own policy
-end of policy period
103
PAP: Difference between Collision and Comprehensive coverage
Collision: impact with another vehicle or object
Comprehensive: covers perils not considered collision, such as breakage of glass, falling objects, flood, contact with bird or animal, etc.
104
What does umbrella insurance cover, and is it really necessary?
Covers liability (bodily injury/property damage) for catastrophic legal claims or judgements.
Requires certain underlying/existing liability coverage. NOTE: if underlying coverage requirement is not maintained, then Umbrella policy will pay only what it would have paid if the underlying coverage had been in force.
Virtually every client needs it (rare exception: client is confined to bed in nursing home).
105
Exclusions often found in an umbrella policy:
-act intended to cause personal injury or property damage
-damage to own property (cannot sue yourself)
-business ownership
-malpractice
-D&O activities
-Worker's comp obligations
106
A typical Business Owner's Policy (BOP) includes coverage for real property, contents, and liability protection. What does it exclude?
Professional Liability
107
_____ insurance covers liability arising from the failure to use due care and the degree of skill expected from someone in the profession.
Malpractice is usually appropriate where the substandard conduct may result in _____.
Errors and Omissions is usually appropriate where the substandard conduct may result in _____.
Professional Liability
Malpractice- bodily injury
E&O- property damage (including money); think lawyers, insurance agents, stockbrokers, and financial planners
108
An extended reporting period (ERP), also known as _____, becomes active after your claims made policy is terminated.
Tail
109
Workers Comp
-Reflects _____ liability
-Full cost of WC benefits must be borne by the _____ (EE or ER).
-Covers _____ expenses without limit on time or money (and is not subject to deductibles or coinsurance).
-Covers disability income with very short waiting periods and often at 66.67% of EE's average weekly pay
-Covers death benefits payable to _____.
-Covers rehabilitation benefits.
-Benefits are received by the EE _____.
Workers Comp
-Reflects absolute liability
-Full cost of WC benefits must be borne by the employer.
-Covers medical expenses without limit on time or money (and is not subject to deductibles or coinsurance).
-Covers disability income with very short waiting periods and often at 66.67% of EE's average weekly pay.
-Covers death benefits payable to family members.
-Covers rehabilitation benefits.
-Benefits are received by the EE tax-free.
110
Unemployment insurance benefits are normally included in a recipient's _____ income (i.e. they are _____).
Gross; taxable
111
Business Overhead Expense (BOE) Insurance pays for...
Pays for business expenses and overhead if business owner becomes disabled.
112
Deductibility of Business Insurance
Business Owner's Policy (BOP)
Commercial Umbrella
Professional Liability
Worker's Comp
Business Overhead Expense
Deductibility of Business Insurance
Business Owner's Policy (BOP)- premium is deductible
Commercial Umbrella- premium is deductible
Professional Liability- premium is deductible
Worker's Comp- premium is deductible
Business Overhead Expense- deductible for self-employed but not C or S corps
113
What is Subject to FICA/FUTA
-Salary/Wages/Bonus
-Deferrals to 401(k), SARSEP, SIMPLE, SIMPLE 401(k), 403(b)
-162 life insurance bonus
-ISO exercise to sale valuation
-457 with no substantial risk of forfeiture
-162 disability insurance bonus
-Excess group life insurance
-EE direct contributions to HSA
114
What is NOT subject to FICA/FUTA?
-SE income
-Distributions from an S corp
-Dividends distributed from a C corp
-Company contributions to retirement plan
-ISO grant to sale violation
-ER contributions to HSA
-EE payroll deductions to HSA
-Salary reductions to FSA
