Dental, vision, and long-term-care benefits will qualify as excepted benefits under final regulations issued by the IRS
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Employee Benefits
Recent Developments in Compensation and Benefits
This article highlights some notable recent rules and guidance in employee benefits and compensation, as well as case law pertaining to employee benefits.
Seventh Circuit Affirms Dismissal of Lawsuit on Employer Mandate Delay
The Seventh Circuit affirmed the dismissal of a suit objecting to the IRS’s decision to delay imposing the Sec. 4980H employer mandate penalty until 2015.
IRS Proposes Changes to Affordable Care Act Lookback and Cafeteria Plan Rules
The IRS issued two notices proposing to change the rules for when a taxpayer can revoke health care coverage in a cafeteria plan and enroll in a plan on the Health Insurance Marketplace exchanges, and how to measure the lookback period for determining who is a full-time employee when an employee changes positions within the same employer group.
Minimum Essential Coverage, Other Health Care Reform Guidance Issued
The IRS released health care guidance, including final regulations on minimum essential coverage, a list of hardship exemptions from individual shared-responsibility penalty, and indexed adjustments for certain calculations under the premium tax credit.
Rules Updated for Transit Fare Smart Cards and Qualified Transportation Fringe Benefits
The IRS announced that, beginning after Dec. 31, 2015, employers will no longer be permitted to provide qualified transportation fringe benefits in the form of cash reimbursement in geographic areas where a terminal-restricted debit card is readily available.
IRS Fills in Details of One-a-Year IRA Rollover Rule
The IRS clarified how the recently announced change in how it interprets the statutory one-rollover-per-year rule for IRAs will affect 2014 rollovers and how the rules will apply starting in 2015.
Defined Contribution Plans Can Offer Deferred Annuities to Older Participants
Qualified defined contribution plans will be allowed to provide lifetime income to plan participants by offering funds including deferred annuities among their assets, even if some of the funds are available only to older plan participants.
Pension Plan Limitations Are Increased for Inflation
Taxpayers will be allowed to contribute more money to their retirement savings in 2015 under new pension plan limits announced by the IRS.
Health Insurance Reporting Gap May Hurt Wealthy Clients
As of the date of this writing, however, questions of substantiating coverage for 2014 remain unanswered, meaning practitioners and their clients should be taking action to avoid substantial potential penalties under PPACA.
FICA Taxation of Nonqualified Deferred Compensation Arrangements
With the passage of the Patient Protection and Affordable Care Act, which provided for an increase in the Medicare tax rate for certain high earners who are members of the ERISA “top hat” group, and recent discussions about the status of Social Security and Medicare funding, it is appropriate to review the rules in Sec. 3121(v)(2) governing FICA taxation.
Appellate Courts Reach Conflicting Decisions on Premium Tax Credit Regs.
On the same day, the D.C. Circuit and Fourth Circuit Courts of Appeals issued decisions on whether Regs. Sec. 1.36B-2(a)(1), which authorizes a premium tax credit for insurance purchased on health insurance exchanges established by the federal government, is a valid regulation.
IRS Issues Guidance on Health Insurance Premium Tax Credits
The IRS issued regulations and revenue procedures addressing how to calculate the Sec. 36B premium tax credit, including how the credit is calculated in conjunction with the Sec. 162(l) deduction for health insurance premiums of self-employed individuals.
Vision, Dental, and Long-Term-Care Benefits Qualify as Limited Excepted Benefits Under New IRS Rules
Dental, vision, and long-term-care benefits will qualify as excepted benefits under final regulations issued by the IRS.
IRS Signals PPACA Compliance Issues for 2015
This month, the IRS made several updates to the Internal Revenue Manual that provide insight on the notices and enforcement methods the Service will use next tax season to ensure taxpayers comply with the health care law.
Doctors Lack Standing to Challenge Delay of Employer Mandate
The Seventh Circuit affirmed the dismissal of a suit objecting to the IRS’s decision to delay imposing the Sec. 4980H employer mandate penalty until 2015.
Changes Proposed to Allocation Rules for Rollovers
The IRS provided rules on how to allocate pre- and after-tax amounts distributed from IRAs, including Roth IRAs, to multiple destinations.
IRS Announces Proposed Changes to Cafeteria Plan Elections and Lookback Period
Proposed changes to the rules for when a taxpayer can revoke health care coverage in a cafeteria plan and how to measure the lookback period for determining who is a full-time employee when an employee moves positions within the same employer group.
Regulations Update Hybrid Defined Benefit Plan Rules
The IRS released final and proposed regulations providing guidance on so-called hybrid defined benefit pension plans.
Guidance Issued on Small-Employer Premium Tax Credit
IRS final regulations provide guidance on how small employers determine full-time-equivalent employees and average annual wages, how to calculate the credit, and what is a “qualifying arrangement” for purposes of the credit.
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