Taxation of Benefits. I understand that all amounts received by me under this Program are taxable to me as ordinary income in the year received.
Taxation of Benefits. Employment and income taxes shall be deducted or withheld from Benefits under this Agreement to the extent required by law.
Taxation of Benefits. Tax-Free Withdrawal of Contributions. Because you already have paid taxes on the amounts contributed to your Xxxx IRAs, you will not be taxed again when you withdraw those contributions. Tax-Free Withdrawal of Earnings. The investment earnings on your contributions also are not taxed when you withdraw them, if paid out in qualified distributions.
Taxation of Benefits. The tax consequences to you of receiving benefits under a Plan depends on who pays for the coverage and the type of benefits provided under the Plan. For example, if the Employer includes its cost for your disability coverage in your taxable gross income, then the amount of any disability benefits that you actually receive from the Disability Plan due to becoming disabled generally will be treated as employee-paid and thus not included in your gross income and subject to taxation. Alternatively, if the Employer excludes the value of Employer-paid disability coverage from your taxable income, then the amount of any disability benefits that you actually receive from the Disability Plan will be included in your gross income and subject to taxation. With respect to group term life insurance, typically the cost of up to $50,000 of group term life insurance on your life paid by the Employer will not be included in your gross income for federal tax purposes. If your life insurance coverage exceeds $50,000, then the cost of such coverage in excess of $50,000 will be included in your gross income for tax purposes. Any income or employment taxes that result from the provision or payment of benefits under the Plan are your sole responsibility; the Employer does not guarantee and shall not be responsible for any particular tax consequences. The tax consequences are complex and you should consult your own tax advisor if you have questions regarding the taxation of your disability benefits and/or life insurance benefits.
