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My employer has paid the premiums for a life insurance

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policy for me for the...
My employer has paid the premiums for a life insurance policy for me for the last 10 years. When I retire, I am supposed to deduct the PS58 costs from the current cash value to determine the taxable income when the policy is assigned from the employer to me. I have looked at the tax returns and don't see PS58 referenced. If my accountant has been paying a tax on the value of the employer's premium payments, where would that number appear on my 1040 return?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: no'
Submitted: 1 year ago.Category: Tax
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Answered in 13 minutes by:
9/8/2016
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,885
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi, My name's Lane, I can help here.

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PS 58 (called table 2001 costs now) represents the cost of insurance (essentially the term premium cost) fo a policy, given a certain death benefit.

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The way this is typically done if employer paid is the PS 58 costs are included in the wages on your W-2 for the tax year in question.

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You'll then see an informational notation for the ps58 cost in box 14.

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If not, then you may get a 1099-R with a code 9, and will then enter on line 16a and b on the 1040

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

line 16a is the total amount of cash, 16b is the taxable portion (cash value in excess of ps58 costs)

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Please let me know if you have any questions at all, before rating me

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit") ... Otherwise JA doesn't credit me for the work here.

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Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

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