IRS Decreases 2018 HSA Contribution Limit for Certain Individuals
The Internal Revenue Service (IRS) has announced that the 2018 annual limitation on health savings account (HSA) contributions by individuals with family coverage under a high deductible health plan (HDHP) is now $6,850. This limit was previously announced as $6,900, but has been revised downward due to an inflation adjustment provision in the Tax Cuts and Jobs Act. The 2018 annual limitation on HSA contributions by an individual with self-only coverage under a HDHP remains unchanged at $3,450.
The content herein is provided for general information purposes only, and does not constitute legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.
New Rule Changes Disability Claim Processing Requirements
Effective for disability benefit claims filed after April 1, 2018, a new rule from the U.S. Department of Labor (DOL) requires ERISA-covered employee benefit plans offering disability benefits to provide additional procedural protections to claimants. The new rule ensures that protections for disability claimants parallel protections under the Affordable Care Act that already apply when workers file claims for group health benefits. These new protections apply to all ERISA-covered disability plans, regardless of how the benefit is characterized by the plan or whether the plan is a pension plan or a welfare plan.
Changes to Claim Processing Requirements
Most notably, the rule includes the following changes to the requirements for claim processing:
Improvement to Basic Disclosure Requirements. Benefit denial notices must include a more complete discussion of why the plan denied a claim and the standards used in making the decision. For example, in relevant cases, the notice must explain why the Plan Administrator disagrees with the opinions of the participant’s or beneficiary’s health care professionals, vocational experts, or the Social Security Administration’s determination of disability
Right to Internal Protocols. Benefit denial notices must include the internal rules, guidelines, protocols, standards, or other similar criteria of the plan that were used in denying a claim, or a statement that none were used.
Access to Claims File. The Plan Administrator must inform participants, in benefit denial notices (rather than simply in notices denying benefits on appeal), that they are entitled to access, upon request and free of charge, all documents relevant to an adverse claim determination.
Avoiding Conflicts of Interest. Plans must ensure that disability benefit claims and appeals are adjudicated in a manner designed to ensure the independence and impartiality of the persons involved in making the decision.
A summary of additional changes can be found by clicking here. To read the full text of the final rule, click here.
Visit our Employee Benefits section for additional information and resources to help employers comply with employee benefits laws.
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
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The Internal Revenue Service (IRS) has released the 2018 Publication 15-B, Employer’s Tax Guide to Fringe Benefits, which contains information for employers on the employment tax treatment of fringe benefits. The 2018 version of the publication has been updated to include the following changes (among others) from the new tax law and other federal guidance:
Suspension of the exclusion for qualified bicycle commuting reimbursements.
Suspension of the exclusion for qualified moving expense reimbursements (with limited exceptions).
Limitation of the employer deduction for expenses for certain fringe benefits.
Establishment of qualified small employer health reimbursement arrangements (QSEHRAs).
In addition, the publication contains the following updated guidance for 2018:
Cents-per-mile rule. The business mileage rate for 2018 is 54.5 cents per mile. This rate may be used to reimburse an employee for business use of a personal vehicle, and under certain conditions, may be used to value the personal use of a vehicle provided to an employee.
Qualified parking exclusion and commuter transportation benefit. For 2018, the monthly exclusion for qualified parking, commuter highway vehicle transportation, and transit passes is$260.
Contribution limit on a health flexible spending arrangement(FSA). For plan years beginning after December 31, 2017, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $2,650.
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.
Current Requirements Continue to Apply Until Proposal is Finalized
Federal agencies recently proposed to amend the definition of short-term, limited-duration insurance so that it may offer a maximum coverage period of less than 12 months after the original effective date of the contract, rather than the current maximum period of less than 3 months. The proposal would also revise the required issuer notice that must be displayed in the contract and any application materials.
Proposal Applicability Date
While the current definition applies to policy years beginning on or after January 1, 2017, a non-enforcement policy applies to policies sold before April 1, 2017, and that end on or before December 31, 2017. The current definition and non-enforcement policy would continue to apply unless and until the proposal is finalized. If finalized, the proposal would apply to insurance policies sold on or after the 60th day following publication of the final rule. Policies sold on or after this date would have to meet the definition of short-term, limited-duration insurance in the final rule in order to be considered such insurance.
Background
Under the Affordable Care Act, short-term, limited-duration insurance is exempt from certain market reforms. The allowable duration of such insurance is currently limited to less than 3 months after the original effective date of the contract. In addition, this insurance is not considered minimum essential coverage, which is necessary for an individual to satisfy the individual mandate unless an exemption applies.
Click here to read the proposal in its entirety. A fact sheet is also available.
For more information on the ACA, be sure to check out our Health Care Reform section.
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.