Archive by tag: FSAReturn
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The IRS recently released an information letter addressing the treatment of cafeteria plan forfeitures when an employer ceases operations and the plan terminates. Specifically, the letter clarifies that Section 125 of the Internal Revenue Code does not require that unused cafeteria plan funds be paid to the U.S. Treasury in these circumstances. How unused funds are disposed of when a plan terminates depends on what the plan document provides and the facts and circumstances at the time.
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Categories: Benefits in General, Compliance | Tags: cafeteria plan , forfeitures , irs , information letter , health fsa , flexible spending account , Section 125
Employee Benefits Corporation sent three members of our Compliance team to the Employer Council on Flexible Compensation (ECFC) Annual Conference in Washington, D.C. March 8-10, 2017.
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Categories: Health Care Reform, Compliance, Health Care in General | Tags: AHCA , ACA , House , Senate , FSA , HSA , HRA , Consumer directed accounts , GOP
Last week, Senators Orin Hatch (R-UT) and Marco Rubio (R-FL) introduced the Health Savings Act of 2017, S.403. Companion legislation was introduced in the House of Representatives by Rep. Eric Paulsen (R-3rd MN). The legislation would expand the use of HSAs by broadening eligibility rules, increasing maximum contribution limits and widening the universe of expenses that could be reimbursed from HSAs. The legislation also contains provisions pertaining to the interaction between HSAs, FSAs and...
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Categories: Health Care Reform | Tags: HSA , HRA , FSA , Health Savings Accounts , Health Reimbursement Arrangements , Flexible Spending Accounts , Health Care Reform
January 19, 2017, the IRS issued proposed regulations that reflect changes to the definition of dependent under Code §152 and other IRS Code provisions made by the Working Families Tax Relief Act of 2004 (WFTRA) and by the Fostering Connections to Success and Increasing Adoptions Act of 2008 (FCSIAA).
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Categories: Benefits in General, Compliance | Tags: DCFSA , WFTRA , IRS , Qualifying Child , Qualifying Relative , Dependent
The IRS has released IRS Publication 503 and Form 2441 (Child and Dependent Care Expenses) and its accompanying instructions for the 2016 tax year.
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Categories: Benefits in General, Compliance | Tags: IRS , Pub. 503 , Form 2441 , Dependent Care , FSA , Dependent Care Tax Credit , Form 1040
That depends. The answer will be different if the employee has a cafeteria plan with runout, grace period or rollover.
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Categories: Benefits in General, Compliance | Tags: HSA , Health FSA , Grace Period , Rollover , Runout
As calendar-year cafeteria plans have begun the 2017 plan year, employers might be wondering whether it is really too late to allow employees to make changes to or revoke their flexible spending account (FSA) elections, especially if it is prior to the first payroll of the new plan year.
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Categories: Benefits in General | Tags: fsa , flexible spending accounts , cafeteria plan , permitted election change
Today the IRS announced under Revenue Procedure 2016-55, the 2017 annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules, and other tax changes. Included in the announcement is the inflation adjusted 2017 limits for health flexible spending accounts (FSAs) in an IRC §125 cafeteria plan and the Parking and Transit account limits in an IRC §132 Transportation Plan.
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Categories: Compliance, Health Care in General | Tags: Health FSA , Transit , Parking , IRS , 2017 Limits

Health Care FSA Limit Projected $2,600 for 2017

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As you may recall, the Affordable Care Act (ACA) put a cap on Health Care FSA salary reductions in 2013, subject to Consumer Price Index (CPI) adjustments in future years. Any adjustments are based upon the average of the Consumer Price Index as of the close of the 12-month period ending on August 31 of such calendar year.
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Categories: Health Care Reform, Compliance, Health Care in General | Tags: Health Care FSA , FSA , Limit , ACA , 2017 Limit

IRS and DOL Propose Form 5500 Revisions

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Just a few short weeks after the DOL announced the penalties will increase to $2,063 per day for failure to file Form 5500s, on July 21, 2016, the Department of Labor (DOL), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) (together called Agencies) will publish in the Federal Register a Notice of Proposed Forms Revisions to the Form 5500 Annual Return/Report Series.
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Categories: Benefits in General, Health Care Reform, Compliance | Tags: IRS , DOL , 5500 , Group Health Plans , FSA , HRA , HDHP