For the first time in four years, the IRS adjusted the affordability percentage used for the shared responsibility penalties. The IRS recently announced that the affordability percentage for 2025 will be 9.02%. This is up from 8.39% in 2024. For employers this means that if you set your employee premium costs from last year right at the ...
The retirement plan industry has been wrestling with the changes to required minimum distribution (RMD) provisions made by the SECURE Act and SECURE 2.0. One issue in particular has caused considerable confusion. Section 401(a)(9) of the Code was amended to provide that, if a retirement plan participant dies after distributions have begun ...
On April 26, 2024, the U.S. Department of Health and Human Services (HHS) published the Reproductive Health Care Rule. This final rule enhances the HIPAA privacy protections for protected health information (PHI) relating to reproductive health care. While the Rule is effective June 25, 2024, all covered entities, including group health ...
The SECURE 2.0 Act of 2022 (SECURE 2.0) made numerous changes to the complex web that makes up U.S. retirement plan laws. Of interest to S corporations that may be considering an employee stock ownership plan (ESOP) is the expansion of Section 1042 of the tax code to permit a 10% tax deferral for certain sales to S corporation ESOPs.
Section 1042 has ...
When it comes to pre-tax savings for qualifying medical expenses, employers have several options available to offer employees. Two of the more popular options are health savings accounts (HSAs) and health reimbursement accounts (HRAs). Both provide valuable benefits for employees. Which to offer may depend on several factors, including ...
As the temperatures continue to rise, regulations and litigation related to employer-sponsored group health plans have followed suit. As these new rules continue to evolve, we are often asked whether a self-insured group health plan is required to cover gender-affirming medical services. Many state governments have enacted legislation on ...
SECURE 2.0 provided employees better access to liquid assets during a major life crisis. We have previously discussed the domestic abuse victim distribution exemption and the emergency personal expense distribution exemption in this space. We are revisiting these topics because the IRS, through issuance of Notice 2024-55, has provided ...
It is the first week of summer, even though in Ohio the smoldering heat has made it feel like summer for weeks now. Summer reminds many of us of pool days, eating watermelon and corn on the cob, Fourth of July fireworks, and 401(k) plan audits. Oh wait, that last one may just be me. But once the summer season arrives, most plan auditors begin the process ...
Last month, the IRS released the 2025 cost-of-living adjusted limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs). The IRS requires that in order to contribute to an HSA, an individual must be enrolled in a HDHP plan that meets the minimum deductible requirements. The minimum deductible is the amount a ...
When considering compensation and benefits packages to lure and retain top executives or talent, nonprofit organizations, including universities and hospitals, are often at a disadvantage compared to their for-profit rivals. Their tax-exempt status limits the compensation options available to them and the public reporting ...