News from Washington IRS Signs Off on Employer’s Matching Contribution Allocation Proposal, Outside the 401(k) PlanThe IRS has blessed an arrangement that will let workers allocate their employer’s annual retirement plan matching contribution to any one of four different accounts, including a 401(k) account, a Health Savings Account, an educational assistance program account, or a […]
Compliance Corner Can You Reimburse Your Ex-Spouse’s Qualified Expenses Tax-Free?A family-court judge can order you to assume partial or full responsibility for an ex-spouse’s future medical expenses. But that judge cannot override federal tax law. HSA distributions for your ex-spouse’s qualified medical expenses are included in your taxable income and subject to a 20% penalty […]
Compliance Corner These Common HSA Mistakes Can Cost ClientsClients eager to use the benefits of HSAs must steer clear of all-too-common mistakes that could bring large tax payments or big penalties, according to experts. Potential mishaps include distributing money toward costs that don’t fit the IRS definition of “qualified medical expenses” and planning for a […]
News from Washington Are District Court Rulings the ‘Final End’ For DOL’s Fiduciary Rule?Experts say the likelihood of the Labor Department’s Retirement Security Rule surviving recent federal district court losses is dim. “The standard for a stay is relevantly significant here, and at this point, it seems like the courts are very dubious, to say […]
News from Washington Second Texas Federal Court Broadens Stay of DOL Retirement Security RuleA second federal court in Texas put a hold on the Department of Labor’s Retirement Security Rule on July 26, expanding beyond an earlier stay to all of the rule’s exemptions and saying that plaintiffs are “virtually certain” to succeed in their […]
News from Washington Judge Stays DOL’s Retirement Security RuleOn July 25, a federal judge in Texas stayed the U.S. Department of Labor’s Retirement Security Rule ahead of its September 23 effective date. The judge granted a request for a preliminary injunction blocking the rule “until further order of the court.” The judge made clear the […]
HSA Studies & Analysis HSA-Like Options for Employees in High Demand, Survey ShowsBoth employers and employees are interested in a new type of health account similar to an HSA that would help employees pay for out-of-pocket health care costs, according to a new survey. The hypothetical plan could be paired with any health plan, not […]
News from Washington IRS Announces Tax Relief for West Virginia Taxpayers Impacted by Severe Storms, Flooding, Landslides, and MudslidesThe Internal Revenue Service announced tax relief for individuals and businesses in West Virginia that were affected by severe storms, flooding, landslides, and mudslides that began on April 11, 2024. These taxpayers now have until November 1, […]
HSA Studies & Analysis Expanding Pre-Deductible Coverage in HSAs Boosts Adherence to Certain MedicationsPatients with certain chronic conditions increased medication adherence when enrolled in HSA-qualified plans with pre-deductible coverage, a new study from EBRI found. Although the increases were relatively small, adherence rates already were relatively high, averaging 77% to 89% for most medications. […]
News from Washington IRS Provides Tax Relief for Taxpayers Impacted by Severe Storms in Mississippi; Deadlines Postponed to November 1, 2024The IRS announced tax relief for individuals and businesses in Mississippi that were affected by severe storms, straight-line winds, tornadoes and flooding that began on April 8, 2024. These taxpayers now have until November 1, […]