New rules permit employers to require new employees to undergo a maximum one-month orientation period before the 90-day period for qualifying for health care coverage begins.
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Employee Benefits
Will Rev. Rul. 2014-15 Expand the Use of Captive Insurance Companies?
In Rev. Rul. 2014-15, the IRS emphasized the need to consider all the facts and circumstances in determining whether an arrangement constitutes insurance, including whether the risks are shifted and distributed.
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.
Federal Courts Disagree on Health Care Credits for Federal Exchanges
Two federal appellate courts issued conflicting decisions regarding the availability of the Sec. 36B premium tax credit for taxpayers who purchase health insurance on exchanges set up by the federal government.
One-IRA-Rollover-a-Year Rule Will Be Effective in 2015, IRS Says
The IRS withdrew proposed regulations that provided that the one-rollover-per-year rule for IRAs applies on an IRA-by-IRA basis.
IRA, Qualified Plan Participants Can Purchase Longevity Annuities
Final regulations issued permit IRA and qualified plan participants to enter into longevity annuities, using a certain amount of their account balances, without having these amounts count for calculating required minimum distributions.
HSA Inflation Adjustments for 2015
The IRS issued the calendar year 2015 inflation-adjusted figures for the annual contribution limits for health savings accounts and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans.
Tax Treatment of Distributions to Pay Accident or Health Insurance Premiums
The IRS finalized regulations that provide that distributions from qualified retirement plans to pay accident or health insurance premiums are taxable unless a statutory exclusion applies. However, arrangements where amounts are used to pay premiums for disability insurance to replace retirement plan contributions in the event of a participant’s disability are not treated as taxable under the regulations if they meet certain requirements.
Regulations Provide Guidance for Small-Employer Premium Tax Credit
The IRS issued final regulations on the Sec. 45R credit for small employers that offer health insurance coverage for employees.
New Rules Allow One-Month Orientation Period Before 90-Day Health Plan Waiting Period Begins
Final regulations govern the maximum length of time an employee orientation period can last consistent with the 90-day waiting period under the Patient Protection and Affordable Care Act, which prohibits employers from requiring new employees to wait more than 90 days before they are eligible for health insurance coverage.
Supreme Court Holds Inherited IRAs Are Not Retirement Funds
The U.S. Supreme Court held that funds from an inherited IRA were not retirement funds that were exempt from the debtor’s bankruptcy estate.
IRS Will Follow the Tax Court on One-IRA-Rollover-per-Year Rule
To settle the question of whether the limitation on rolling over one IRA per year under Sec. 408(d)(3)(B) applies to taxpayers on an aggregate basis or on an IRA-by-IRA basis, the IRS announced it will follow the a recent Tax Court’s recent decision, applying the rule on an aggregate basis, meaning no matter how many IRAs a taxpayer has, the taxpayer is limited to one rollover per year.
Retirement Plans Must Recognize Same-Sex Marriages
Administrators of qualified retirement plans must recognize the same-sex spouses of legally married participants as of June 26, 2013, under guidance issued by the IRS but will not be required to amend their plans to retroactively recognize participants’ legal same-sex marriages before that date.
Notice Clarifies Midyear Amendment of Certain Retirement Plans Post-Windsor
The IRS clarified that a qualified retirement plan will continue to be a qualified 401(k) or 401(m) safe-harbor plan if it adopts a midyear amendment to its plan to comply with the rules in Notice 2014-19 requiring qualified plans to conform to the Windsor decision.
Final Rules Govern Tax Treatment of Distributions to Pay Accident or Health Insurance Premiums
The IRS finalized regulations that provide that distributions from qualified retirement plans to pay accident or health insurance premiums are taxable unless a statutory exclusion applies.
The New Fee on Health Insurers
This item examines one of the key revenue provisions of the Patient Protection and Affordable Care Act, which provides for the imposition of an annual fee on health insurance providers that are “covered entities.”
IRS Announces Simplified Employer Health Care Coverage Reporting
The IRS released final regulations to implement simplified reporting requirements under the Patient Protection and Affordable Care Act.
Final Rules on Substantial Risk of Forfeiture Are Released
The IRS finalized regulations that clarify when a substantial risk of forfeiture exists on the transfer of stock to an employee that is treated as compensation under Sec. 83.
IRS Issues 2015 Inflation Adjustments for HSAs
The IRS issued the calendar year 2015 inflation-adjusted figures for the annual contribution limits for HSAs and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans.
Guidance Issued on Application of Windsor to Retirement Plans
Administrators of qualified retirement plans must recognize the same-sex spouses of legally married participants as of June 26, 2013, under guidance issued by the IRS.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
