The premiums paid for life insurance coverage in a qualified retirement plan will be __________ by the plan sponsor.

Question

Quizplus · Accepted Answer

The premiums paid for life insurance coverage in a qualified retirement plan will be deductible by the plan sponsor. However, in this case, the plan participant must include the value of the pure death benefit as imputed income in his or her gross income for tax purposes. The net amount at risk is considered to be the policy's death benefit amount minus the policy's cash value.

The Premiums Paid for Life Insurance Coverage in a Qualified