Pre Tax Healthcare Premiums

[jeterfan]

What is the name of your state (only U.S. law)? Michigan

I am a missionary in France for the past 5 years and up until this month have been covered under an Aetna healthcare plan. The US/French agreement of 1987 says I must enter the French Social System (healthcare and social security) which I am doing this month. My US employer was taking out my Aetna premium on a pre tax basis and paying Aetna. Now my premium is going to the French government which I pay myself. My US employer now says that my healthcare premium is taxable because they are not paying it and I am not enrolled in the Aetna group plan. Aren't healthcare dollars healthcare dollars? I am a US citizen being paid in US dollars, filing both US and French tax returns. Is there a way to make my healthcare premiums pre tax?

Thanks,
Steve

 

[pattytx]

The French medical insurance system is not a qualified plan under ERISA. Therefore, yes, your premiums (or just think of them as taxes) are now after-U.S. tax and no, there is no way "around" it.

See your tax advisor. You may be able to write them off on your 1040.

 

[jeterfan]

Merci beaucoup!!

Thank you for your quick reply!!

Blessings,
Steve

 

[TIMMAAYY]

If your employer would put in an alternate funding plan, all of you could get your premium paid for pre-tax, regardless of what plan you are on. Section 105... IRS... been there since 1952. There IS a way around it. But, it's up to your employer, not you, to install a plan document and set up the plan.