Carl
Level 15

Retirement tax questions

Tom - Yeah. I don't know why I read "medical" where it quite clearly says "life". Life insurance is always paid with after-tax dollars and of course, is not tax deductible. However, there are some instances where if you pay for life insurance with before-tax dollars, that can make the insurance payout taxable to the beneficiary recipient. It wouldn't in this case. But then, congress can change that anytime they feel like it.