Reply To: Disability Pension

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#1799
Cape retiree
Participant

My recollection of disability pensions where employee contributes a percent to the cost of a company disability plan was that the percentage of the cost the employee covered was not taxable. So, if $25,000 in annual payments, and employee had paid 75% of the premiums, then only $6,250 of the disability payments (the portion paid for by employer) were taxable.