It’s true that Health Savings Accounts can pay for medical expenses now, but the most powerful tax advantages and benefits come from saving the balance for later, even into retirement. With the growth in HSA popularity over the last few years, anyone looking for employee benefits has read about or heard of the triple-tax advantage...
Philadelphia will soon be the next major U.S. city to adopt a commuter benefits mandate for eligible employers. On June 9, 2022, the Philadelphia City Council passed an ordinance that will require certain employers to offer a pre-tax commuter benefits program to their employees. The Philadelphia mayor is expected to sign the bill soon. Key…
This week, the IRS released IRS Rev. Proc. 2022-24, which includes the 2023 limits for health savings accounts (HSA) and high-deductible health plans (HDHP). Below is a comparison of the 2022 and 2023 limits for HSAs and HDHPs. The catch-up contribution limit for HSAs remains at $1,000 for the 2023 plan year. Interested in learning more about…
On March 15, 2022, President Biden signed into law the Consolidated Appropriations Act of 2022 (the “Act”), which restores the ability for high deductible health plans to pay for telehealth services before a covered individual satisfies the plans annual deductible. This means an individual can receive telehealth services without regard to the annual deductible and…
On February 18, 2022, President Biden once again formally extended the COVID-19 National Emergency. This means that the following deadlines which were set to expire on March 1, 2022, will now be tolled for one (1) year (or, if earlier, 60 days from the end of the National Emergency). Participants: COBRA Qualifying Event and Disability…
The provisions of the federal COBRA law provide a valuable benefit to employees. The COBRA acronym is shorthand for the Consolidated Omnibus Budget Reconciliation Act of 1985. It requires employers of 20 or more employees who provide healthcare benefits to offer the option of continuing this coverage to individuals who would otherwise lose their benefits…
The IRS announced the 2022 medical mileage rate for taxpayers who deduct the cost of operating a vehicle for business, charitable, medical, or moving expense purposes when filing their taxes. The new rate is $.18 per mile, which is an increase from the 2021 rate of $.16. For more details, read the full text of…
When it comes to tax-advantaged spending accounts, the eligibility rules can be a source of confusion for employees. If an employer offers an HSA-qualified high-deductible health plan (HDHP), employees should review their health coverage to understand how it impacts their HSA eligibility. Here’s a common question that comes up during open enrollment about HSA eligibility. …
With the end of the year quickly approaching, we want to provide an update regarding pandemic-related relief provisions for flexible spending accounts (FSA) and dependent care accounts (DCA). Several pieces of legislation were signed into law over the past 18 months to help American families manage healthcare costs during the pandemic. This temporarily included: Raising…
The IRS has announced the 2022 contribution limits for flexible spending accounts (FSA), commuter benefits, and more. Here’s a look at what’s changing. Health FSA: $2,850 (Increased from $2,750). This also applies to limited purpose FSAs. FSA Carryover: $570 (Increased from $550). Important Note: Under the Consolidated Appropriations Act (CAA), employers can allow participants to…
In December 2020, the Consolidated Appropriations Act (CAA) was signed into law. A key requirement of the law going into effect on December 27, 2021 which will require brokers and consultants of ERISA covered group health plans to disclose their compensation if they expect to receive $1,000 or more in either direct or indirect compensation…