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IRS Announces 2020 Adjustments

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Category: CDHC, Flexible Spending, IRS, Transit and Parking Section 132,

Today, the IRS announced Revenue Procedure 2019-44 which provides the 2020 cost-of-living increases for inflation for certain items. In 2020, the:

  • Annual Healthcare Flexible Spending Account (FSA) contribution limits will increase $50 from the current amount of $2,700 to $2,750

  • Monthly limit for Transit and Parking will increase $5 each from the current amount of $265 to $270

  • Annual maximum reimbursement for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) will increase $100 for individual coverage from the current amount of $5,150 to $5,250, and the maximum reimbursement amount will increase $150 for family coverage from the current amount of $10,450 to $10,600

As a reminder, the IRS announced 2020 health savings account (HSA) contributions limit increases. In 2020, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,500 to $3,550, and the family coverage contribution limit will increase $100 from the current $7,000 to $7,100.

If you have any questions, please contact American Benefits Group for more information. 

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IRS Announces 2019 Adjustments

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Category: CDHC, Flexible Spending, IRS, Transit and Parking Section 132,

Today, the IRS announced Revenue Procedure 2018-57 which provides the 2019 cost-of-living increases for inflation for certain items. In 2019, the:

  • Annual healthcare flexible spending account (FSA) contribution limits will increase $50 from the current amount of $2,650 to $2,700
  • Monthly limit for transit and parking will increase $5 from the current amount of $260 to $265
  • Annual maximum reimbursement for a qualified small employer health reimbursement arrangement (QSEHRA) will increase $100 for individual coverage from the current amount of $5,050 to $5,150, and the maximum reimbursement amount will increase $200 for family coverage from the current amount of $10,250 to $10,450

As a reminder, on May 10, 2018, the IRS announced 2019 health savings account (HSA) contributions limit increases. In 2019, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,450 to $3,500, and the family coverage contribution limit will increase $100 from the current $6,900 to $7,000.

If you have any questions, please contact your Service Delivery Manager for more information. 

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IRS Announces Change to 2018 Family HSA Contribution Limit

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Category: Cafeteria Plans, Compliance and Regulatory, HSA, IRS,

On March 5, 2018, the IRS released Rev. Proc. 2018-18 (as part of Bulletin 2018-10). Due to changes made in the Tax Cuts and Jobs Act (2017 tax reform), certain adjustments needed to be made to inflation amounts. One of those adjustments is to the annual family contribution for HSA's in 2018. The family max contribution is decreased from $6,900 to $6,850. The single contribution limit remains unchanged at $3,450.

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IRS and DOL Publish Guidance for Those Impacted by Hurricane Irma

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Category: CDHC, COBRA, Compliance and Regulatory, IRS,

Similar to action taken a few weeks ago in response to Hurricane Harvey, the IRS and DOL both recently published guidance containing certain relief for those individuals and businesses in Hurricane Irma’s path.

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ACA Reporting and HRAs

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Category: ACA, Health Reimbursement Arrangements, HRA, IRS,

Section 6056 Update

Good news!  The IRS has changed their position on both of these issues!
 
We just received final 2015 versions of the instructions for Forms 1094-B, 1095-B, 1094-C, and 1095-C.
 
Reporting HRA Coverage
In the instructions for Forms 1094-B and 1095-B, the IRS states:

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Premium Tax Credits at Risk After Circuit Split

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Category: ACA, IRS, PPACA,

Two federal appeals courts issued conflicting rulings on a key provision of the Patient Protection and Affordable Care Act (PPACA) relating to the availability of premium tax credits and cost-sharing subsidies on the federally facilitated exchanges. First, the U.S. Court of Appeals for the D.C. Circuit, in Halbig v. Burwell, overturned this provision, stating that PPACA does not authorize the Internal Revenue Service (IRS) to provide premium tax credits and cost-sharing subsidies for insurance purchased on the federally facilitated exchanges (as the law does for insurance purchased on state-established exchanges). Shortly thereafter, the U.S. Court of Appeals for the Fourth Circuit, in King v. Burwell, upheld the same PPACA provision, stating that PPACA does authorize the IRS to provide premium tax credits and cost-sharing subsidies on federally facilitated exchanges. Parties in both cases plan to appeal the rulings, and the cases appear to be headed to the U.S. Supreme Court, particularly with the circuit split.

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An Important Announcement Regarding FSA Policy

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Category: Flexible Spending, FSA, IRS,

Moments ago, the Department of Treasury issued a press release and informational fact sheet announcing a major policy change relating to flexible spending accounts (FSAs) that has many positive implications for all FSA constituents – including administrators, employers and participants.  The Department of Treasury has modified its FSA “use-it-or-lose-it” provision to allow a limited rollover of FSA funds.

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Affordable Care Act Changes for Flexible Spending Accounts

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Category: Flexible Spending, FSA, IRS, Section 125 Plans,

On Friday, September 13, 2013 Treasury published Notice 2013-54 (Notice) which preserves all Health Flexible Spending Accounts (health FSAs) that are considered excepted benefits but eliminates an employer’s ability to use a stand-alone health FSA or other tax-favored arrangements, including Premium Reimbursement Arrangements or Health Reimbursement Arrangements (HRAs), to help employees pay for individual health policies on a tax-free basis. In addition, the Notice addresses a number of specific topics related to FSAs and HRAs. As such, this Alert is the second of two.

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Important Affordable Care Act Deadline: Employee Notices of the Health Insurance Marketplace (Exchange) Due by October 1, 2013 (copy)

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Category: CDHC, COBRA, Compliance and Regulatory, DOL, Health Care Reform, IRS, PPACA, Taxes,

On May 8, 2013, the Employee Benefits Security Administration of the U.S. Department of Labor (“DOL”) issued Technical Release No. 2013-02 (“Release”) providing important guidance under the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (“Affordable Care Act”), with regard to the requirement that employers provide notices to their employees of the existence of the Health Insurance Marketplace (“Marketplace”), previously referred to as the “Exchange.”

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Important Affordable Care Act Deadline: Employee Notices of the Health Insurance Marketplace (Exchange) Due by October 1, 2013

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Category: CDHC, COBRA, Compliance and Regulatory, DOL, Health Care Reform, IRS, PPACA, Taxes,

On May 8, 2013, the Employee Benefits Security Administration of the U.S. Department of Labor (“DOL”) issued Technical Release No. 2013-02 (“Release”) providing important guidance under the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (“Affordable Care Act”), with regard to the requirement that employers provide notices to their employees of the existence of the Health Insurance Marketplace (“Marketplace”), previously referred to as the “Exchange.”

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The ACA – What you need to do NOW

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Category: CDHC, Compliance and Regulatory, DOL, ERISA, Health Care Reform, IRS, PPACA, Taxes,

By Robert J. Lowe

The Patient Protection and Affordable Care Act includes many requirements applicable to employer group health plans. Some of these requirements are already effective but some of the most significant requirements will become effective in 2014. Employers should now be considering what they need to do to comply with ACA requirements that will become effective in 2014.

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Clarification by Treasury and IRS Relaxes Election Change Rules

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Category: Cafeteria Plans, CDHC, Compliance and Regulatory, Health Care Reform, HHS, IRS, PPACA, Section 125 Plans,

So employers and employees can take advantage of the health insurance Exchanges starting January 1, 2014, regulators issued some exceptions to the permitted election changes rule for cafeteria plans.

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ObamaCare signals big role for Health Savings Accounts


Category: CDHC, Compliance and Regulatory, Health Care Reform, Health Savings, Health Savings, HSA, IRS, PPACA, Taxes,

contributed by: Dan Perrin, Executive Director of the HSA Coalition

Despite getting clobbered in the fiscal cliff negotiations, Republicans have something to celebrate this year - the survival of health savings accounts, or HSAs. They had feared

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So you've got an HSA, now what do you do with it?


Category: CDHC, Health Care Reform, Health Savings, HSA, IRS,

By Beth Pinsker Gladstone
NEW YORK | Thu Oct 11, 2012 9:30am EDT

NEW YORK (Reuters) - If your company tells you it's replacing your health insurance with a high deductible plan paired with a health savings account - or adding that option to your

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