EBIA Weekly Archives - Cafeteria Plans

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  1. Do we need to amend our cafeteria plan as a result of the additional HIPAA special enrollment rights that became available beginning April 1, 2009?
    From the July 16, 2009 EBIA Weekly
    QUESTION: I understand that two additional HIPAA special enrollment rights became available beginning April 1, 2009. Our company’s cafeteria plan allows mid-year election changes that correspond with the special enrollment rights that were already in effect. Do ...
  2. Would a 10% pay cut allow our employees to change their elections for health FSA or health insurance benefits under our cafeteria plan?
    From the June 25, 2009 EBIA Weekly
    QUESTION: Our company is thinking about asking our employees to take a 10% cut in pay. Would this pay cut allow those employees to make mid-year changes to their health FSA or health insurance elections under our company’...
  3. Can our employees make pre-tax payroll contributions to their HSAs if we don't have a cafeteria plan?
    From the May 28, 2009 EBIA Weekly
    QUESTION: Our company offers a high-deductible health plan (HDHP), and many participants contribute to their own HSAs. Several have asked whether they could make pre-tax contributions to their HSAs so that they could get their income tax savings ...
  4. One-Time Irrevocable Election to Waive Retiree Health Benefits in Exchange for Higher Pay Isn't Taxable
    From the May 14, 2009 EBIA Weekly
    In this private letter ruling, the IRS reviewed an employer’s retiree health insurance program that allowed employees to make a one-time irrevocable election to waive retiree health insurance in exchange for a higher rate of future pay. ...
    [Priv. Ltr. Rul. 200914018 (Dec. 19, 2008) ]
  5. Several States Expand Marriage Rights for Same-Sex Couples
    From the April 23, 2009 EBIA Weekly
    In developments that appear to reflect a general trend, two more states now recognize same-sex marriage and one more state now provides a marriage equivalent for same-sex couples. In Iowa, marriage rights were changed by the Varnum decision, ...
    [Varnum v. Brien, 2009 WL 874044 (Iowa 2009); S.115 (Vermont); E2SSB 5688 (Washington)]
  6. IRS Updates Its Webpage on the Health Coverage Tax Credit for Changes Made by ARRA
    From the April 23, 2009 EBIA Weekly
    As background, the Trade Act of 2002 created a health coverage tax credit (HCTC) that helped reduce the out-of-pocket cost of COBRA coverage for a limited group of individuals (generally including eligible individuals under the Trade Adjustment Assistance (...
    [IRS Webpage: HCTC Latest News, Overview and Background (Apr. 21, 2009)]
  7. IRS Explains Why Standard Mileage Rate for Medical Expenses Is Substantially Less Than Rate for Business Expenses
    From the April 09, 2009 EBIA Weekly
    This IRS information letter explains why the standard mileage rate used to determine medical expense deductions is substantially lower than the rate used to determine business expense deductions. For 2009, the standard mileage rate for medical expenses is 24 cents ...
    [IRS Information Letter 2009-0053 (Jan. 27, 2009)]
  8. Breast Pumps Used for General Health Are Not Medical Care Expenses
    From the April 09, 2009 EBIA Weekly
    This information letter responds to a letter recommending that the IRS allow breast pumps and related equipment to be reimbursed under a health FSA. The information letter explains that health FSA funds generally must be used for medical care, which ...
    [IRS Information Letter 2009-0033 (Mar. 4, 2009)]
  9. IRS Discusses Deductibility of Nursing Home Care for Individual With Alzheimer's Disease
    From the March 19, 2009 EBIA Weekly
    This Information Letter addresses the deductibility of expenses paid to care for an individual with Alzheimer’s disease who was in an assisted care program. Under Code Section 213, expenses paid for medical care of the taxpayer, spouse, or ...
    [IRS Information Letter 2009-0010 (Dec. 18, 2008)]
  10. May we include as part of our HSA program a debit card for paying and reimbursing medical expenses?
    From the March 05, 2009 EBIA Weekly
    QUESTION: Our company contributes to its eligible employees’ HSAs, but we are concerned that many employees may be using their HSAs to pay for nonmedical expenses. Can we try to discourage our employees’ nonmedical spending by adding a ...

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