- 11 - section 105 may be encapsulated in a qualified retirement plan. See, e.g., Berman v. Commissioner, 925 F.2d 936, 938-939 (6th Cir. 1991), affg. T.C. Memo. 1989-654; Caplin v. United States, 718 F.2d 544, 548-549 (2d Cir. 1983); Wood v. United States, 590 F.2d 321, 323 (9th Cir. 1979). Additionally, section 105(e)(2) provides that amounts received under a disability fund maintained under State law are treated as received through accident or health insurance. See, e.g., Rosen v. United States, 829 F.2d 506, 509 (4th Cir. 1987); Beisler v. Commissioner, 814 F.2d 1304, 1306 (9th Cir. 1987); Trappey v. Commissioner, 34 T.C. 407, 408 (1960). The general rule of section 105(a) is that amounts received by an employee through accident or health insurance are included in gross income to the extent: (1) Attributable to contributions by the employer, not included in the gross income of the employee, or (2) paid by the employer. Stated conversely, amounts received through such insurance are typically excludable 7(...continued) (b) Amounts Expended for Medical Care.* * * gross income does not include amounts referred to in subsection (a) if such amounts are paid, directly or indirectly, to the taxpayer to reimburse the taxpayer for expenses incurred by him for the medical care * * * of the taxpayer * * *Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011