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

Gathered from the web by the editors at BenefitsLink.com.
[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)

[Guidance Overview] Heroes Earnings Assistance and Relief Tax Act of 2008: Impact on Health Care Flexible Spending Accounts
Excerpt: "HEART added section 125(h) to the Internal Revenue Code (the Code) which permits cafeteria plans to provide qualified reservist distributions (QRD) to an employee of all or a portion of the balance of the employee's unused amounts in the health FSA." (ERISAdiagnostics, Inc.)

Adoption Act Amends Tax Code Definition of Qualifying Child
Excerpt: "On Oct. 7, President Bush signed the Fostering Connections to Success and Increasing Adoptions Act of 2008 (H.R.6893). The act focuses primarily on promoting adoption, but it also amends the definition of a qualifying child in the Internal Revenue Code. The definition is used to determine eligibility for certain tax benefits, such as the dependency exemption, the child tax credit, the earned income tax credit and the dependent care tax credit. In addition, it is referenced by many employer-sponsored health care and dependent care plans." (Watson Wyatt Worldwide)

[Guidance Overview] IRS Explains That Certain Legal Fees and Mileage Qualify as Medical Care Expenses, but Infant Formula Does Not
Excerpt: "The IRS has issued two information letters about medical care expenses. The first letter responds to a taxpayer who asked whether legal fees and mileage expenses to establish a guardianship for her husband (who has Alzheimer's disease) could be deducted as medical care expenses. . . . The second information letter responds to an individual who asked why a health FSA could not provide tax-free reimbursement for infant formula for the baby of a woman who could not breastfeed due to a double mastectomy. The letter explains that food, including infant formula, that satisfies nutritional requirements is a personal expenditure, not a medical care expense, and cannot be reimbursed on a tax-free basis under a health FSA." (Employee Benefits Institute of America)

[Guidance Overview] Reservists Don't Have to Use or Lose Their Health Flexible Spending Accounts (PDF)
1 page. Excerpt: "Taxation. Employers should report the [Qualified Reservist Distribution] on Form W-2 as wages for the year in which the QRD is paid to the employee. A QRD is also subject to employment taxes." (Seyfarth Shaw LLP)

[Guidance Overview] IRS Guidance on Health FSA Distributions Under the Heart Act
Excerpt: "Earlier this year, the Heroes Earnings Assistance and Relief Tax Act (HEART Act) of 2008 became law. The HEART Act was designed to provide much-needed financial flexibility for our military. In its first guidance on the HEART Act, the IRS has released Notice 2008-82 which discusses Qualified Reservist Distributions (QRDs). QRDs provide certain military reservists with special options in their health care flexible spending accounts, but employer action is necessary to enable the process. This article explains the IRS guidance." (JPMorgan Chase & Co.)

[Guidance Overview] Health FSAs: IRS Issues Guidance on New 'Qualified Reservist Distributions'
Excerpt: "The Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART) amended IRC §125 to permit military reservists who are called to active duty to withdraw the unused portion of their health flexible spending arrangements (FSAs). IRS recently issued guidance explaining how the new distributions are to be administered and provided a transition period until January 1, 2010 for amending the plan document. IRS Notice 2008-82." (Deloitte via BenefitsLink.com)

[Guidance Overview] Adoptions Act Narrows the Definition of Qualifying Child Under Code Section 152
Excerpt: "President Bush has signed into law legislation that includes a provision limiting who can be considered a 'qualifying child' under the definition of dependent in Code Section 152. (Under Code Section 152, a person is considered a dependent only if he or she is either a qualifying relative or a qualifying child.)" (Employee Benefits Institute of America (EBIA))

States Use of 'Cafeteria Plans' to Provide Health Insurance
Excerpt: "In the past three years, several states are experimenting with a new use for an old idea, aimed at lowering costs for both employees and their employers. 'Section 125 cafeteria plans' were created by a 1978 federal law which amended the Internal Revenue Code. Designed as an optional feature for employers, cafeteria plans allow employees to pay for a variety of health care expenses without paying any federal tax on those charges. . . . As of mid-2008, at least 12 states had adopted a cafeteria plan approach into state-based health reforms, with a dual goal of keeping coverage available and affordable while expanding the numbers using commercial health insurance. " (National Conference of State Legislatures)

[Guidance Overview] IRS Details for Qualified Reservist Distribution from Health Flexible Spending Accounts
Excerpt: "Employers that have already allowed QRDs from their cafeteria plans should amend their plans to reflect their rules and procedures regarding QRDs no later than December 31, 2009. Some employers may have already amended their cafeteria plans to allow QRDs and, in that case, they should review the amendment to determine whether they need to make any changes based on the recent clarifications. QRDs made on or after January 1, 2010 will require a prospective plan amendment." (Faegre & Benson LLP)

[Guidance Overview] IRS Guidance on FSA Distributions under the Heroes Earnings Assistance and Relief Tax Act (PDF)
2 pages. Excerpt: "HEART amended Internal Revenue Code Section 125 to allow employers to provide 'qualified reservist distributions' (QRDs) from health flexible spending accounts (FSAs) to employee-reservists who are called to active duty for 180 or more days, or for an indefinite period of time. . . . The IRS has issued Notice 2008-82, which provides important guidance for plan sponsors who wish to add this feature to their FSAs." (Buck Consultants)

[Guidance Overview] IRS Guidance on Qualified Reservist Distributions Addresses Many Open Issues
Excerpt: "EBIA Comment: Although QRDs can help reservists avoid unwanted health FSA forfeitures under the use-or-lose rule, some employers may have delayed amending their health FSA and cafeteria plan documents pending further guidance on QRDs. The guidance in the notice provides much-needed clarification on issues that had been left open by the authorizing legislation, and should help these employers to decide whether to add this new feature to their plans." (Employee Benefits Institute of America)

IRS Provides Guidance on Reservist FSA Distributions
Excerpt: "The Internal Revenue Service has issued Notice 2008-82 providing guidance on qualified reservist distributions (QRDs) from health flexible spending accounts (FSAs) and including a transition rule allowing plans to be retroactively amended for QRDs made before January 1, 2010." (PLANSPONSOR.com; free registration required)

Recognizing the Value of Flexible Benefits in Asia
Excerpt: "This empowering aspect of flex helps set it apart from traditional health plans. In a world of diverse employees who value different benefits at different stages of their lives, employees can tailor their benefit packages to suit their individual needs and wants, making benefit choices that fit well with their priorities. For example, college graduates entering the workforce might not value medical insurance as much as educational assistance, a new pair of fashionable eyeglasses or a gym membership, while a new parent might embrace maternity and pediatric benefits. And a 55-year-old employee might value additional medical protection and more savings for retirement." (Mercer LLC)

[Guidance Overview] Treasury Dept. and IRS 2008-2009 Priority Guidance Plan Includes Guidance for Cafeteria and Health Plans
Excerpt: "EBIA Comment: This Priority Guidance Plan covers the twelve-month period ending June 30, 2009, but we are hoping to see final cafeteria plan regulations by the end of 2008. Guidance on GINA will also be welcome as employers, administrators, and insurers begin to familiarize themselves with the requirements of this new law and to consider its impact." (Employee Benefits Institute of America)

HSAs, FSAs, HRAs: Which Consumer Driven Health Care Option Should You Choose? (PDF)
2 pages. Updated for 2008 and 2009 Excerpt: "Unfortunately, many consumers and employers are confused about the differences between the various consumer-driven plans and which option would be best for them. The Council for Affordable Health Insurance (CAHI) has prepared this analysis [in chart form] in an effort to help people make informed choices." (The Councial for Affordable Health Insurance)

[Guidance Overview] Impact of the Heroes Earnings Assistance and Relief Tax Act of 2008 on Employee Benefit Plans (PDF)
6 pages. Excerpt: "The IRS has yet to issue guidance clarifying the provisions of the HEART Act and their impact on employee benefit plans, although it has identified this guidance as a high priority. Since plan amendments incorporating the mandatory provisions of the HEART Act are not required until the last day of the plan year beginning on or after January 1, 2010, you can wait for further guidance from the IRS before amending your plans. Nonetheless, you must be careful to operate your plans in accordance with the provisions of the HEART Act that are effective retroactively or that will take effect as of January 1, 2009." (Harter Secrest & Emery LLP)

[Guidance Overview] REMINDER: January 1, 2009 Proposed Effective Date for New Cafeteria Plan Regulations
Excerpt: "Cafeteria plan sponsors, their administrators and advisors will want to examine the need to bring their cafeteria plans into compliance with the proposed cafeteria plan regulations by January 1, 2009. At the time it proposed the regulations, IRS withdrew the prior Prop. Treas. Reg. §§ 1.125-1 & 1.125-2, leaving the new proposals as the only existing regulatory guidance on most of the fundamental features of IRC § 125 plans. Treas. Reg. §§ 1.125-3 and -4 – regarding the effect of the Family and Medical Leave Act on the operation of IRC § 125 cafeteria plans and permitted mid-year election changes, respectively – remain in effect." (Deloitte via BenefitsLink.com)

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