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per-tax health insurance plan

Am I right in my understanding that a pre-tax health plan covers (or can cover) the employee, their spouse, and child (per Sect 152 who is a qualifying child or qualifying relative). That any other person would not be covered **pre-tax** by the plan - ie: included fully in wages for FICA, Medicare, federal, state, FUTA and SUTA.

The question came up from a client's employee who wants to cover their non-dependent adult child. I'm unsure at this point if this child would meet the QC or QR rules. They're checking with the employee, I'm "looking into it".

Basically, where's the line drawn?

Thanks,

Reply to
Paul Thomas
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If it's an employer's plan, I would think any such family members would be "outside the pale" and therefore not covered per the plan. My wife wondered if Blue Cross would cover her adult non dependent daughter and the answer was "no".

ChEAr$, Harlan

Reply to
Harlan Lunsford

Based on my peripheral involvment with the employer-provided group health plan industry, I second Harlan's comment, it's a moot point.

I'd be surprised if any reputable, commercially-available, employer-sponsored group health plan would even offer coverage to someone who did not qualify as a spouse or tax "dependent", more specifically a QC (not even QR's usually qualify). They periodically audit insured families to enforce this very restriction.

-Mark Bole

Reply to
Mark Bole

Employee, spouse and dependent (doesn't have to be a child). Dependent is defined using the rules for medical deductions. That means it is the Qualifying Relative rules w/o the gross income test, w/o the married joint return test and w/o the dependent can't have any dependents test.

Reply to
Alan

I agree with the above, however Disney is allowing gay 'life partners' to be covered. Brings up an interesting debate. ;)

................................................................ John H. Outlan CPA Orlando, FL USA cell (407) 924-2727 email snipped-for-privacy@outlancpa.com url

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Reply to
joutlancpa

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