VLOL Question(s)
#1
Gets Weekends Off
Thread Starter
Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,542
VLOL Question(s)
Does anyone know off hand if the benefits that come off our new VLOL insurance are taxed or is the payment tax free?
For example, I have elected the tax free/post tax LOL/LTD option from the company, so theoretically if something tragic happens and I can’t hold a medical anymore then I’ll receive $12,500/month tax free from the company until age 65.
The VLOL benefit would pay an additional $12,500/month for 5 years after the 180 elimination period, but is that VLOL $12,500 taxed or post tax?
For example, I have elected the tax free/post tax LOL/LTD option from the company, so theoretically if something tragic happens and I can’t hold a medical anymore then I’ll receive $12,500/month tax free from the company until age 65.
The VLOL benefit would pay an additional $12,500/month for 5 years after the 180 elimination period, but is that VLOL $12,500 taxed or post tax?
#2
Line Holder
Joined APC: Jul 2015
Posts: 46
Disability Calculator
Whack,
Sorry can't help with the VLOL question. If you haven't already, plug in your numbers in the disability calculator on the SWAPA homepage. Great tool to see how things unfold for each month (Different STD plan options) and after 5 years once the LOL payment stops.
Sorry can't help with the VLOL question. If you haven't already, plug in your numbers in the disability calculator on the SWAPA homepage. Great tool to see how things unfold for each month (Different STD plan options) and after 5 years once the LOL payment stops.
#3
Gets Weekends Off
Thread Starter
Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,542
Thanks. I have but it still leaves me questioning whether VLOL benefits would be taxed or if they come post tax.
Which leaves me wondering the same thing about the $1364/week STD payments in months 2-6.
Which leaves me wondering the same thing about the $1364/week STD payments in months 2-6.
#4
If you pay the insurance premium with after-tax $, then the benefits are tax exempt.
A lot of pilots think it is "better" if the company pays for LOL insurance, but personally I would rather make (i.e. negotiate for) a few extra $$ and pay for it myself so the benefits are tax-free.
#5
Gets Weekends Off
Thread Starter
Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,542
The short answer is that if the company pays the premium, or the premium is paid with pre-tax withholding, then the payments are taxable.
If you pay the insurance premium with after-tax $, then the benefits are tax exempt.
A lot of pilots think it is "better" if the company pays for LOL insurance, but personally I would rather make a few extra $$ and pay for it myself so the benefits are tax-free.
If you pay the insurance premium with after-tax $, then the benefits are tax exempt.
A lot of pilots think it is "better" if the company pays for LOL insurance, but personally I would rather make a few extra $$ and pay for it myself so the benefits are tax-free.
#6
#9
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Joined APC: Jul 2007
Posts: 3,565
Does anyone know off hand if the benefits that come off our new VLOL insurance are taxed or is the payment tax free?
For example, I have elected the tax free/post tax LOL/LTD option from the company, so theoretically if something tragic happens and I can’t hold a medical anymore then I’ll receive $12,500/month tax free from the company until age 65.
The VLOL benefit would pay an additional $12,500/month for 5 years after the 180 elimination period, but is that VLOL $12,500 taxed or post tax?
For example, I have elected the tax free/post tax LOL/LTD option from the company, so theoretically if something tragic happens and I can’t hold a medical anymore then I’ll receive $12,500/month tax free from the company until age 65.
The VLOL benefit would pay an additional $12,500/month for 5 years after the 180 elimination period, but is that VLOL $12,500 taxed or post tax?
VLOL - tax free.
STD plans - tax free.
LTD plans - tax free.
Originally Posted by Jeff Lebowsky
And just to make sure: VLOL is NOT available for probies?
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