Question
NYL LTD also have LLC
Me and my spouse own an LLC. We own it 50/50. They also get a W2 from the LLC and we take an owner's draw as well. I do not work there. I am currently trying to qualify for LTD offered through my employer with NYL. My STD has run out. Will the owner's draw affect my ability to receive LTD? Do I need to state on taxes that I do not materially participate in the LLC? Thank you!
Answer
LLC and LTD,
If you receive active income, meaning its not considered passive investment income from the LLC that you own half of, then NYL may attempt to offset your monthly disability benefit amount by the amount you receive from the LLC. It doesn't matter that you don’t work for the LLC. Your ownership alone may be used as an offset and could disqualify you from benefits from NYL. You should make ownership 100 percent in your wife’s name to avoid any issue. We would need to see your policy to give an accurate opinion and I am just speculating based upon past experience.
