Headlines about "Cafeteria plans (125, flexible spending)"

Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Chart of 2009 and 2010 Retirement Plan and Other Inflation‑Adjusted Benefits (PDF)
3 pages. Also included are transportation and adoption benefits. (Seyfarth Shaw LLP)

IRS Personnel Share Unofficial Comments on Compliance Issues with ABA Employee Benefits Committee
Excerpt: "IRS representatives shared their unofficial views on certain benefits issues that were presented earlier this year by the Employee Benefits Committee of the Tax Section of the American Bar Association. Although the views cited by the IRS representatives are not binding and do not represent the policy of the agency, they provide useful insight into areas of concern. Some of the notable unofficial and non-binding views shared by the IRS representatives were the following . . . ." (Deloitte via BenefitsLink.com)

[Guidance Overview] Michelle's Law Amendments: HRA Plans and Cafeteria Plans with Health Care Reimbursement Accounts
Excerpt: "Tax/COBRA Treatment[:] Because Michelle's Law did not amend Code section 152, reimbursements for eligible expenses of dependents covered under Michelle's law that do not meet the definition of dependent under Code section 152 may be subject to tax. In addition, it is unclear whether COBRA coverage for 'Michelle's Law' dependents is measured from the loss of student status or the loss of extended coverage provided by Michelle's law." (Fort William LLC)

[Guidance Overview] Red Flags Rule: Application to Health Flexible Spending Accounts, Health Reimbursement Arrangements, Dependent Care Assistant Programs and Transportation Plans
Excerpt: "Under the Red Flags Rule, certain businesses and organizations must establish and implement a written Identity Theft Prevention Program (ITPP). To comply with the Red Flags Rules, a written ITPP must have four basic elements . . . ." (Groom Law Group)

[Guidance Overview] IRS and Treasury Officials Provide Unofficial Views on Imputing Income for Health Coverage and More
Excerpt: "The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has reported on its May 2009 Q&A session with IRS and Treasury officials. Highlights include . . . ." (Employee Benefits Institute of America)

Health Expense Accounts Could Face Cuts
Excerpt: "The health care bill proposed last week by the Senate Finance Committee would pare tax-free health expense accounts. . . . The legislation would limit FSA contributions to $2,000 a year beginning in 2013. And it would standardize the expenses that are qualified. 'The Finance Committee presumably decided that the revenue loss from FSAs is large in relation to the good it does,' says Paul Ginsburg, president of the Center for Studying Health System Change." (USA TODAY)

[Guidance Overview] Ohio Health Reforms Mandate Cafeteria Plans, Expand Access for Adult Children and Increase State COBRA Coverage Period (PDF)
3 pages. Excerpt: "Ohio's recently enacted state budget (Am. Sub. H.B. 1) includes several provisions that may affect employer-sponsored plans. The new law requires employers with 10 or more employees to offer full-time employees the opportunity to pay for health insurance with pre-tax dollars, requires insurers and public employee benefit plans to offer coverage to dependents up to age 28, and extends the period of health continuation under the state COBRA law from 6 to 12 months." (Buck Consultants)

[Guidance Overview] Your Employee Benefits and the FTC's New Red Flag Rules
Excerpt: "Are the employee benefits that your company offers subject to the new Red Flag Rules? Under new guidance issued by the FTC, the answer is probably not. But if your cafeteria plan includes a Flexible Spending Arrangement (FSA) benefit with a debit card, you may want to take some steps to ensure that the third party administrator issuing the debit card is in compliance with the Red Flag Rules by November 1, 2009. You may also want to take similar steps with the trustee of your 401(k) or other pension benefits." (Warner Norcross & Judd LLP)

[Guidance Overview] DOL Staff Members Provide Informal Views on SPDs/SMMs and Issues Under the Davis-Bacon and Service Contract Acts
Excerpt: "The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has reported on its May 7, 2009 Q&A session with DOL staff members. Highlights include unofficial, nonbinding remarks about these welfare plan topics: (1) SPD requirements when there is a change in federal law, and (2) treatment of FSAs, HRAs, and HSAs under the Davis-Bacon Act and the Service Contract Act." (Employee Benefits Institute of America)

Don't Tread on My FSA, Advocacy Group Warns
Excerpt: "The Employers Council on Flexible Compensation (ECFC), a non-profit organization dedicated to the maintenance and expansion of private employee benefit programs on a tax-advantaged basis, has formed a national grassroots advocacy organization called Save Flexible Spending Plans 'to protect against the elimination of flexible spending accounts as an option to help fund a small portion of the costs for health care reform efforts.'" (Wolters Kluwer)

Flexible Spending Accounts May Change Under Health Care Reform
Excerpt: "One issue in the health care reform debate could involve a proposal to cap flexible spending accounts -- pre-tax funds that employees can use to cover certain out-of-pocket medical expenses -- which many federal workers use. The House version of the health care reform legislation (H.R. 3200) currently includes an amendment that would limit the scope of FSAs by prohibiting employees from using them to pay for over-the-counter medicines -- a move that the Joint Committee on Taxation estimated would save the government $8.2 billion over 10 years." (GovernmentExecutive.com)

[Guidance Overview] Ohio Mandates Cafeteria Plan Offer; Delays for Federal Approval
Excerpt: "Ohio employers with 10 or more employees will be required to offer uninsured employees the opportunity to purchase coverage on a pre-tax basis through a section 125 cafeteria plan under a new law (HB 1). The mandate will take effect incrementally, beginning Jan. 1, 2011, for employers with 500 or more employees; July 1, 2011, for employers with 150-500 employees; and Jan. 1, 2012, for employers with fewer employees, but these effective dates will be delayed if regulations aren't issued by July 1, 2010." (Mercer LLC)

[Guidance Overview] Health and Cafeteria Plan Issues Requiring Attention in 2009
Excerpt: "[A] broad range of welfare plan legal issues will require attention in the coming months. [The target document] is a thumbnail sketch of several key near-term issues for employers, including special enrollment, Medicare reporting, privacy and security under the Health Insurance Portability and Accountability Act (HIPAA), mental health benefits, genetic information, cafeteria plans and college student dependents." (Ogletree, Deakins, Nash, Smoak & Stewart, P.C.)

[Guidance Overview] IRS Discussion on Whether Various Over-the-Counter Items Are Medical Care Expenses
Excerpt: "EBIA Comment: This information letter is noteworthy for its detail and provides insights into a number of difficult expenses, many of which have not previously been addressed by the IRS. Those who work with health FSAs and HRAs will want to familiarize themselves with the letter and the analysis it contains. [See http://www.ebia.com/files/PDFs/OTCltr.pdf.]" (Employee Benefits Institute of America)

FTC Clarification of Status of 401(k) Accounts and Health FSAs Under Red Flag Identity Theft Rule
Excerpt: "Pension and benefit plan sponsors and service providers have questioned whether offering or administering 401(k) plan loans or health care flexible spending accounts makes them 'creditors' or 'financial institutions' subject to the Red Flag Rule. The FTC, in a series of frequently-asked questions [at http://www.ftc.gov/bcp/edu/microsites/redflagsrule/faqs.shtm], has clarified these issues; see Section B Questions 12, 13 and 14. To give creditors and financial institutions more time to review this guidance and develop and implement written Identity Theft Prevention Programs, the FTC has announced that it will delay enforcement of the rule from August 1, 2009 until November 1, 2009." (International Foundation of Employee Benefit Plans)

[Guidance Overview] Recent Legislation and Regulations Require Changes to Health and Welfare Benefit Plans
Excerpt: "Congress and federal regulatory agencies have been busy enacting legislation and proffering guidance which implements many new requirements for group health and welfare benefit plans. Many of the changes will require thoughtful action on the part of administrators and sponsors of group health and welfare benefit plans. This brief outline of current health and welfare compliance developments is not intended to be exhaustive, but rather serves to illustrate the depth and breadth of changes facing plan sponsors now and in the coming months." (Littler Mendelson P.C.)

Employers Council on Flexible Compensation Creates Website to Lobby for Protection of Flexible Spending Accounts
Excerpt: "Save Flexible Spending Plans (FSAs) is a national grassroots advocacy campaign to protect against the elimination of flexible spending accounts as an option to help fund a small portion of the costs for health care reform efforts. The campaign is bringing together and giving a voice to the millions of Americans who rely on FSAs to manage and pay for their health care costs." (Save Flexible Spending Plans)

[Guidance Overview] Minnesota Enacts Relief on Employer Reporting Requirement and Minnesota Department of Commerce Releases Opt-Out Form
Excerpt: "Minnesota has amended the law imposing a reporting requirement on employers with respect to pre-tax premium payments. In addition, the Minnesota Department of Commerce has released an opt-out form for the cafeteria plan law enacted last year. Below is an update regarding both developments." (Dorsey & Whitney LLP)

[Opinion] Curbing Flexible Spending Accounts Could Help Pay For Health Care Reform
Excerpt: "Congress should consider scaling back or eliminating health care flexible spending accounts (FSAs) as part of its effort to pay for health care reform. This paper, which is part of a series of papers on proposals to help pay for health reform, outlines several ways in which Congress could curtail FSAs." (Center on Budget Policies and Priorities)

[Guidance Overview] Bureau of Labor Statistics Data on Employee Access to 'Other Types of Benefits,' 1979-2008
Excerpt: "Table 3 also shows the percent of workers with access to 'other benefits' in 2008. . . . The benefits with the highest rate of worker access were work-related education assistance (50 percent) and employee assistance programs (42 percent). Among the benefits with lower access rates, 2 percent of workers in private industry had access to employer-provided personal computers for home use, and 3 percent of workers had access to employer provided child-care funds." (U.S. Bureau of Labor Statistics)

Text of Comments by Employers Council on Flexible Compensation Concerning Proposed Tax Law Changes for FSAs, HRAs and Employer-Provided Health Coverage in General
5 pages, submitted to the Senate Finance Committee May 26, 2009. (Employers Council on Flexible Compensation)

[Guidance Overview] Proposed Cafeteria Plan Regulations Require Employer Action
Excerpt: "The Internal Revenue Service (IRS) issued Proposed Regulations on Internal Revenue Code Section 125 plans, commonly referred to as 'cafeteria plans,' in 2007. Final regulations are still pending. However, the Proposed Regulations forecast that major changes will be required for cafeteria plans when the IRS issues the Final Regulations. Plan sponsors must incorporate these changes in documents and in plan operations. Failure to do so may disqualify the plan under the 'no tolerance rule.' Unlike qualified retirement plans, cafeteria plans that fail to meet the Code Section 125 regulations as a result of plan document or operational failures will have no recourse through an IRS voluntary correction program ? such plans will simply be stripped of their tax-preferred status. In other words, there will be no tolerance for such failures." (McGuireWoods LLP)

[Opinion] Curbing Flexible Spending Accounts Could Help Pay for Health Care Reform
Excerpt: "Congress should consider scaling back or eliminating health care flexible spending accounts (FSAs) as part of its effort to pay for health care reform. This paper . . . outlines several ways in which Congress could curtail FSAs." (Center on Budget and Policy Priorities)

[Guidance Overview] Minnesota Posts Employer Opt-Out for Cafeteria Plan Mandate
Excerpt: "Minnesota employers can use a new form to opt out of the state's mandate to offer employees a cafeteria plan option. Starting July 1, most employers with 11 or more full-time equivalent Minnesota employees that don't offer employee health benefits must establish a cafeteria plan. Employers don't have to offer or contribute to health insurance, but they generally must provide a premium-only plan so workers can purchase coverage with pretax contributions. Employers may opt out by certifying that they understand the advantages of Section 125 plans and have chosen not to offer one." (Mercer LLC)

Benefits Card Increases Appeal of Tax-Favored Accounts
Excerpt: "Health care consumers report the availability of benefits cards positively influenced their decision to sign up for tax-favored accounts including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), or Health Reimbursement Arrangements (HRAs), according to the results of the Evolution Benefits Consumer Experience Survey." (PLANSPONSOR.com; free registration required)

[Guidance Overview] Two New Minnesota Health Benefits-Related Laws
Excerpt: "Two laws were enacted in Minnesota recently relating to health benefit plans that may affect you as an employer. The first, which should be attended to right away, requires employers to provide a report to each employee with his or her annual W-2 informing the employee of the amount of health insurance premiums paid by the employee with pre-tax dollars through a Section 125 plan (also known as a cafeteria plan or flexible benefits plan) beginning with premiums paid in 2009. . . . The second, which takes effect on July 1, 2009, requires an employer with more than 10 full-time equivalent employees (except employers who offer a group health insurance plan or group self-insured plan or who have no employees who would be eligible to participate in a Section 125) to establish and maintain a Section 125 that allows employees to purchase on a pre-tax basis individual or employer-based health coverage." (Fredrikson & Byron P.A.)

[Guidance Overview] IRS Explaination on Why Standard Mileage Rate for Medical Expenses Is Substantially Less Than Rate for Business Expenses
Excerpt: "Transportation expenses that are deductible medical expenses under Code Section 213 generally can be paid or reimbursed on a tax-free basis by a health FSA, HRA, or HSA. (Some employers' health FSAs or HRAs exclude medical transportation expenses from the list of reimbursable items to simplify plan administration.) The explanation in the information letter can help health FSA and HRA administrators, who may be asked why the medical and business rates differ so much." (Employee Benefits Institute of America)

[Guidance Overview] Breast Pumps Used for General Health Are Not Medical Care Expenses
Excerpt: "EBIA Comment: There is nothing new about the position that breast pumps used merely to benefit general health (or for convenience, scheduling, or other personal reasons) are not medical care expenses. However, the information letter, like earlier Treasury Tax Correspondence on this subject . . ., does not mention that breast pumps are sometimes used to treat a medical condition (e.g., a breast abscess). At least one IRS official has informally indicated that breast pumps may qualify as medical care expenses if there are medical reasons for their use. Indeed, many health FSAs treat breast pumps as dual-purpose items that can be reimbursed if the participant provides a note from a medical practitioner recommending the breast pump to treat a specific medical condition." (Employee Benefits Institute of America)

Changes Sought for FSA Rules
Excerpt: "A new bill joins an existing measure that seeks to change the rules applying to flexible spending accounts. Introduced by Rep. James Sensenbrenner, R-Wis., HR 1279 would increase contribution limits to dependent care FSAs and would allow unused amounts to carry over to the following tax year. Already on the table is HR 544, which would allow up to $500 of unused money in health FSAs to be permanently carried over to subsequent plan years." (Investment News; free registration required)

Bill Would Put LTC on Cafeteria Menu
Excerpt: "Lawmakers have launched a new effort to help consumers pay for long term care insurance through cafeteria plans and flexible spending arrangements. In addition to permitting workers to pay for LTC insurance through cafeteria plans and FSAs, the new Senate bill, S. 702, the Long-Term Care Affordability and Security Act of 2009, would add consumer protection standards drawn from a model law approved by the National Association of Insurance Commissioners, Kansas City, Mo." (National Underwriter Life & Health)

Consumer-Directed Plans, FSAs Attract Well-Paid, Well Educated Employees, According to Study
Excerpt: "These were among the conclusions of the National Center for Health Statistics (NCHS) Data Brief #15, Consumer-Directed Health Care for Persons Under 65 Years of Age with Private Health Insurance: United States, 2007, released this month. Of privately insured persons younger than age 65, 17.3% were enrolled in HDHPs, 4.5% were enrolled in CDHPs, and 14.8% were in families with an FSA." (Wolters Kluwer)

[Guidance Overview] Cafeteria Plan Regulations and Partnerships and Stockholders
Excerpt: "The cafeteria plan regulations that were released in 2007 make it clear that more than 2% shareholders in an S corporation cannot be covered under their corporation's cafeteria plan. Those regulations define a more than 2% shareholder by using the strict attribution rules that consider stock owned by spouses, children, etc. as being owned by the 'employee.'" (Tax Management Inc.)

[Guidance Overview] IRS Discussion of Deductibility of Nursing Home Care for Individual With Alzheimer's Disease
Excerpt: "EBIA Comment: The most important thing for employers and administrators to remember about this guidance is what it does not say. Specifically, although qualified long-term care services can be deductible on a tax return, health FSAs cannot reimburse them on a tax-free basis. Similarly, most HRAs may not reimburse expenses for qualified long-term care services. (This is because most HRAs are health FSAs -- meaning that the maximum amount of reimbursement they offer is not more than 500% of the employer's contributions.) In contrast, HSAs can reimburse long-term care services tax-free." (Employee Benefits Institute of America)

[Guidance Overview] Employee Benefits Issues to Consider in a Reduction in Force
Excerpt: "As unfortunate as it may be, sometimes the only effective way to increase a company's bottom line during an economic recession is a reduction in force (RIF). The economic analysis should, however, consider much more than just the terminated employees' salaries. Other considerations include nonqualified deferred compensation, stock plans, bonuses, severance pay, retirement plans, health and welfare plans, and FSAs. This article, while not exhaustive, discusses many of the issues an employer may face and thus should consider when performing the economic analysis of a potential RIF." (Deloitte via BenefitsLink.com)

Oklahoma Health Care Measure Would Provide Incentives to Businesses
Excerpt: "Oklahoma House members voted unanimously to approve a measure that would expand the state's Insure Oklahoma program. According to the Associated Press, the program, funded by tobacco tax revenue, provides premium assistance to small business workers and employers. The new law would provide incentives to businesses that offer Section 125 plans so employees can use pretax dollars to purchase health care coverage." (PLANSPONSOR.com; free registration required)

FSA Changes Sought
Excerpt: "Rules applying to health flexible [spending accounts] would change under a bill recently introduced. HR 544, introduced by Rep. Edward Royce, R-Calif., would allow up to $500 of unused money in such accounts to be permanently carried over to subsequent plan years. Currently, unused money must be used by March 15 following the year during which the money was deposited. The bill also would allow the unused amounts to be rolled into certain other savings plans, including health savings accounts or qualified retirement plans." (Investment News; free registration required)

[Guidance Overview] Recent Legislation Requires Numerous Changes to Group Health Plans
Material covered includes coordination with SCHIP and Medicaid and New Privacy Restrictions in the Stimulus Package. (Troutman Sanders LLP)

When Is $100 Worth $155? If You're in 28 Percent Tax Bracket, That's the Value of Paying for Personal Expenses with Pre-Tax Dollars
Excerpt: "Any time you take advantage of a tax savings opportunity, less of your hard-earned money goes to taxes and, therefore, more ends up in your pocket. So, let's . . . review some of the tax breaks available to you these days." (The Boston Globe)

[Guidance Overview] New Federal SCHIP Law Requires Cafeteria and Health Plan Amendments
Excerpt: "Before April 1, 2009, you will need to amend your health plan and your cafeteria plan to accommodate the new special enrollment rights. You should also look at your health plan's coordination of benefit rules to see if they need to be updated to reflect that SCHIP supplemental coverage will pay secondary to your plan. You will not need to start using the new notice and disclosure forms until the first plan year that follows their availability. Although the Department of Health & Human Services has until February of 2010 to develop the forms, we expect that the Department will push to have these forms out in 2009." (Warner Norcross & Judd LLP)

[Guidance Overview] Expenses Incurred to Father Children Through Unrelated Egg Donor and Gestational Carriers Were Not for Medical Care
Excerpt: "EBIA Comment: The Tax Court distinguished the current case from previous IRS guidance on egg donor expenses . . ., noting that the taxpayer's expenses in the egg donor guidance were deductible because she had unsuccessfully undergone assisted reproductive technology procedures to enable her to conceive and the donated egg was going to be implanted into her body. The case also reminds us that adjudicating infertility expenses can be difficult. Health FSA administrators, who must determine whether an expense qualifies as medical care under Code Section 213(d), generally should not rely solely on the 'fertility enhancement' entry in IRS Publication 502." (Employee Benefits Institute of America)

Making the Most of Flexible Spending Accounts
Excerpt: "In this column, we offer some tips on getting the most from these health accounts, whether you're using up leftover 2008 money, wanting to plan how to use your 2009 account or considering signing up for a plan in the fall, when open enrollment rolls around again." (The New York Times; free registration required)

[Guidance Overview] Recent Guidance Impacting Employer Group Health Plans (PDF)
2 pages. Reprinted from Employee Benefit Plan Review. Excerpt: "Recent guidance from the IRS explains how qualified reservist distributions may be made from employer health flexible spending account plans and includes a transitional rule permitting retroactive plan amendments to be made until December 31, 2009." (Winston & Strawn LLP)

[Guidance Overview] IRS's 2008 Version of Publication 969 on HSAs, HRAs, Health FSAs,and MSAs
Excerpt: "EBIA Comment: Publication 969 is a handy tool for comparing the basic features of various consumer-driven health care vehicles without getting too bogged down in the details. The updated version of Publication 969 is also a reminder of the considerable amount of pertinent guidance that the IRS issued in 2008, particularly on HSAs." (Employee Benefits Institute of America)

[Guidance Overview] Action May be Required by December 31, 2008 to Comply with Proposed Cafeteria Plan Regulations (PDF)
5 pages. Excerpt: "This alert includes the following topics: Action May be Required by December 31, 2008 to comply with Proposed Cafeteria Plan Regulations; Highlights of the New Proposed Regulations; New Plan Design Features; and, Action Items." (Baker & McKenzie LLP)

Upgraded Technology Better Itemizes FSA Debit Card Expenses
Excerpt: "Employees whose employer-provided health plan provides a flexible spending account (FSA) debit card may find it easier to use those cards. Rite Aid, a nationwide drugstore chain with 4,900 stores in 31 states and Washington, D.C., has upgraded pharmacy and front-end cash registers to simplify tracking health-related spending. The registers now print receipts that identify items that may be eligible for reimbursement as part of a FSA benefit plan, according to a company press release." (Thompson Publishing Group Inc.)

Towers Perrin U.S. Legislative Tracking Chart: Health & Welfare (PDF)
25 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)

[Guidance Overview] Transition Relief Extended for Using Health FSA and HRA Debit Cards at Drug Stores and Pharmacies
Excerpt: "The IRS has issued Notice 2008-104 to extend by six months the transition relief for using health flexible spending arrangement (Health FSA) and health reimbursement arrangement (HRA) debit cards at certain merchants with Drug Store and Pharmacy merchant category codes (MCCs). . . . Basically, the notice gives these merchants until June 30, 2009 ? instead of December 31, 2008 ? to implement the inventory information approval system described in Notice 2006-69, 2006-31 I.R.B. 107. " (Deloitte via BenefitsLink.com)

[Guidance Overview] 401(k), Pension, and Welfare Plans: 2008 Year-End Compliance Matters (PDF)
5 pages. Excerpt: "With the year rapidly coming to an end, it is timely for retirement and welfare plan sponsors to consider updating their plans to reflect recent changes in applicable law. This alert provides information about four developments from 2008 that should now be on the radar screen for plan sponsors. (1) Code Section 415; [(2) Proposed Section 125 (Cafeteria Plan) Regulations; (3) Mental Health Parity; (4) The HEART Act.]" (Paul, Hastings, Janofsky & Walker LLP)

[Guidance Overview] IRS Provides Transition Relief for the Use of Health FSA and HRA Debit Cards at Drug Stores and Pharmacies
Excerpt: "For stores with the Drug Stores and Pharmacies MCC, and those working with plans that wish to allow card use at those locations, having six more months until these additional restrictions take effect will no doubt be welcome news. Until that time, transactions at such stores continue to be subject to the same debit card substantiation rules as transactions at merchants that are medical care providers by MCC [merchant category code]." (Employee Benefits Institute of America)

[Official Guidance] Text of IRS Notice 2008-104: Additional Transition Relief on Use of Debit Cards for Medical Expense Reimbursements (PDF)
1 page. Excerpt: "The deadline in Notice 2007-2 is extended by six months so that, after June 30, 2009, health FSA and HRA debit cards may not be used at stores with the Drug Stores and Pharmacies merchant category code unless the requirements of (1) or (2) above are satisfied." (Internal Revenue Service)

[Guidance Overview] Three-Cent Decrease in 2009 Mileage Rate for Transportation to Obtain Medical Care or as Part of Deductible Moving Expenses
Excerpt: "The IRS has announced that the standard mileage rate for use of an automobile to obtain medical care (which may be deductible under Code Section 213 if it is primarily for, and essential to, medical care) will be 24 cents per mile for 2009. This is a three-cent decrease from the increase to 27 cents that was implemented July 1, 2008 to address escalating gasoline prices . . . . " (Employee Benefits Institute of America)

Using Section 125 Premium-Only Plans to Expand Healthcare Coverage by Employers (PDF)
4 pages. Excerpt: "Section 125 premium-only plans are simple to implement, have minimal filing obligations, lower the cost of health insurance for employees, and may even save employers money. This brief explores how states are expanding the use of these plans to increase access to health coverage." (Mathematica Policy Research, Inc.)

[Guidance Overview] IRS Releases 2008 Forms 2441 and 1040A (Schedule 2)
Excerpt: "The IRS has released Form 2441 ('Child and Dependent Care Expenses') and its accompanying instructions for the 2008 tax year. Form 2441 is a dual-purpose form. Taxpayers file it with Form 1040 to determine the amount of their dependent care tax credit (DCTC). They also use it to establish that the amounts reported in Box 10 of Form W-2 (the value of employer-provided dependent care (DCAP) benefits) are not taxable." (Employee Benefits Institute of America)

[Guidance Overview] 2008 Year-End Benefits Planning
5 pages. Excerpt: "Section 409A Compliance . . . Special Rules for 457(f) Plans . . . Qualified Retirement Plans . . . 403(b) Plans . . . Proposed Cafeteria Plan Regulations . . . Medicare Secondary Payer Reporting Requirements" (von Briesen & Roper)

[Guidance Overview] Hewitt's Global Retirement Update for November 2008
Excerpt: "Our Global Retirement Update summarizes recent legislative developments and trends related to retirement and financial management and highlights recently passed and pending legislation that may require employers to take action to comply with new rules or review existing plans." (Hewitt)

[Guidance Overview] 2008 Year-End Plan Sponsor 'To Do' Lists (PDF)
22 pages; at pages 1-14; bravo! Excerpt: "Attached are seven 'to do' lists that may require you to take action before the end of 2008 or in early 2009. Many of the action items are a result of the Pension Protection Act of 2006 (the 'PPA'). For your convenience we have broken the 'to do' lists into the following seven categories: All Qualified Plans; Section 401(k) Plans; Defined Contribution Plans (other than Section 401(k) Plans); Defined Benefit Plans; Section 403(b) and Section 457(b) Plans; Health and Welfare Plans; [and] Executive Compensation." (Snell & Wilmer)

[Guidance Overview] 2008 Year-End Checkup for Pension and Welfare Benefit Plans (PDF)
17 pages. Excerpt: "This Alert will help identify general year-end administrative and planning issues that could lead to compliance or employee relations problems if not addressed before, or early in, 2009. In addition, we have highlighted recent legislative or regulatory developments that may require plan design or documentation changes." (Aon)

[Guidance Overview] Distributions from Health FSAs to Employees on Active Military Duty
Excerpt: "The IRS recently issued clarifications on the Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act) which became law on June 18, 2008. This Act allows, but does not require, distributions from a pre-tax health flexible spending account (health FSA) to employees who leave for active military duty. This article contains a summary of the new IRS guidance issued in Notice 2008-82. For sake of this article, we will refer to a qualified reservist distribution (QRD) as a 'distribution.'" (TRI-AD)

[Guidance Overview] Five New Health Plan Compliance Developments Need Consideration (PDF)
5 pages. Law firm's newsletter provides overview of rules on mental health parity, bicycle commuter benefit, Michelle's Law, clarification of dependent child definition and Medicare secondary reporting requirements. (Trucker Huss)

[Guidance Overview] New FSA Withdrawal Feature for Eligible Reservists: Amending Cafeteria Plans Following the HEART Act
Excerpt: "QRDs are not required additions to FSAs. However, where a plan sponsor decides to offer QRDs, the cafeteria plan must be amended, and the amendment must apply uniformly to all eligible plan participants." (McGuireWoods LLP)

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