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December 2, 2011
IRS releases 2011 Forms for HSA Reporting
The Form 8889 is used by HSA account holders to report contributions, including contributions made by the HSA account holder’s employer, as well as distributions from the HSA that occur during the tax year. This form is also used to calculate HSA deductions and any reportable income or tax that could be owed if the account holder becomes HSA-ineligible during the tax year. The IRS released the 2011 edition of the Form 8889, together with Instructions for completing the Form. The 2011 form reflects the changes made by the health care reform law; specifically relating to the increase in penalty from 10% to 20% for nonqualified distributions, and the prescription requirement applicable to over-the counter medications.
Extension of Premium Assistance for Certain TAA Individuals
Since 2002, premium assistance toward COBRA or other health coverage has been available to certain individuals whose jobs were lost due to foreign trade-related agreements. The assistance has been in the form of a refundable Health Care Tax Credit (HCTC), equaling 65% of health premium. This provision has been extended several times since first enacted in 2002, and had expired as of February 14, 2011. The law has been extended again, retroactive to February 14, 2011, by way of the Adjustment Assistance (TAA) Extension Act of 2011, signed by President Obama on October 21, 2011. Following are highlights of this law:
An MSP Reminder: Loud and Clear
In a recent Sixth Circuit Court of Appeals decision (Bio-Medical Applications of Tennessee, Inc. v. Central States Southeast and Southwest Areas Health and Welfare Fund), we are reminded of how important it is to comply with the Medicare Secondary Payer (MSP) Rules.
New DOL Consumer Assistance Website
The DOL’s Employee Benefit Security Administration (EBSA) has unveiled a new Consumer Assistance segment on their website. This section provides resources, tools, finding devices, FAQs, fact sheets and publications relating to health and retirement plans. It also allows one to submit questions, complaints or problems about benefits directly to an EBSA benefit advisor.
November 28, 2011
HRB 41 - More ACA Updates
Supreme Court to Ponder Health Care Reform Law
The Supreme Court of the United States has decided to review four questions of law deriving from the health care reform law (the Patient Protection and Affordable Care Act, referenced as the Affordable Care Act or "ACA"). The questions that the Supreme Court will consider are as follows:
November 21, 2011
Congress Repeals 3% Withholding, Provides Tax Incentives for Hiring Veterans
November 14, 2011
Reminder: Expiration of Permissible Rollovers from FSA or HRA to HSA
When the concept for health savings accounts was enacted in 2004, the law allowed, for a limited period of time, the ability to roll over account balances from flexible medical spending accounts or health reimbursement arrangements into health savings accounts, as long as certain conditions are met. The ability to roll from these types of accounts expires December 31, 2011.
Form 5500 Non-Filer Project
Generally, a plan subject to ERISA must file an annual report, known as a 5500. Certain exceptions apply, specifically to small welfare benefit plans.
2012 Pension and Retirement Plan Limits
The 2012 plan limits, applicable to defined benefit and defined contribution plans, have been issued by the IRS (highlights below; also see IRS COLA table).
2012 Changes in Social Security Wage Base and Medicare Premiums
2012 Social Security Cost-of-living Adjustment