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Do You Know the ABCs of HSAs, FSAs and HRAs?

There continues to be much uncertainty about the Affordable Care Act and how such uncertainty will impact health care costs. So it’s critical to leverage all tax-advantaged ways to fund these expenses, including HSAs, FSAs and HRAs. Here’s how to make sense of this alphabet soup of health care accounts.

HSAs

If you’re covered by a qualified high-deductible health plan (HDHP), you can contribute pretax income to an employer-sponsored Health Savings Account — or make deductible contributions to an HSA you set up yourself — up to $3,450 for self-only coverage and $6,900 for family coverage for 2018. Plus, if you’re age 55 or older, you may contribute an additional $1,000.

You own the account, which can bear interest or be invested, growing tax-deferred similar to an IRA. Withdrawals for qualified medical expenses are tax-free, and you can carry over a balance from year to year.

FSAs

Regardless of […]

By |June 26th, 2018|affordable care act, Health care, hsa|0 Comments

House Republicans Pass Amended AHCA

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On May 4, 2017, members of the U.S. House of Representatives voted along party lines to pass an amended version of the American Health Care Act – proposed legislation to repeal and replace the ACA. The AHCA will now move on to be considered by the Senate. This ACA Compliance Bulletin provides an overview of the proposed legislation and its potential impact going forward.

The AHCA needed 216 votes to pass in the House. Ultimately, it passed on a party-line vote, with 217 Republicans and no Democrats voting in favor of the legislation. The AHCA will only need a simple majority vote in the Senate to pass. If it passes both the House and the Senate, the AHCA would then go to President Donald Trump to be signed into law.

The attached bulletin provides helpful information on how this may affect employers and individuals. We will keep you updated on any new developments and in the meantime, feel free to reach out to your Linkenheimer CPA with any questions.

Download the ACA Compliance Bulletin Now

By |May 9th, 2017|affordable care act, Health care|0 Comments

More Info on ACA Repeal and Replacement

House Republicans have unveiled a repeal and replacement plan for the Affordable Care Act (ACA). The GOP’s American Health Care Act (ACHA) would eliminate most of the ACA’s taxes, including penalties connected with individual and employer mandates, the net investment income (NII) tax and the Additional Medicare tax. Left in place, although delayed, would be the excise tax on high dollar health plans. Also left in place, would be a number of non-tax provisions related to scope of coverage, benefits and children- including allowing dependents to continue to stay on their parents’ plan until the age of 26, prohibiting health insurers from denying coverage or raising rates to patients based on pre-existing conditions, and forbidding life-time limits on insurance coverage.

The House GOP plan has been rejected by Democrats. Some Republicans have said the plan does not go far enough in repealing all of the ACA. As March moves forward, a vote on the house floor is eventually expected.

To read the impact of the ACA changes, new age-based credits, repeal of NII tax, expanded HSA and other topics, click the link for a detailed read from CCH and Wolters Kluwer. CCH Tax Briefing – ACA Repeal […]

By |March 14th, 2017|affordable care act, Health care|0 Comments

What the ACA May Look Like Under Trump

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President Donald Trump has made dismantling the Affordable Care Act (ACA) one of the cornerstones of his administration. Steps have already been taken to begin the process. The initial steps, including an executive order issued by Trump, have no immediate impact on the ACA. No ACA provisions or requirements have been eliminated or delayed at this time. However, employers should be aware that the following plan requirements would change if the ACA is repealed:

  • Prohibition on lifetime and annual limits
  • Out-of-pocket maximum limit
  • Waiting period limit
  • Prohibition on pre-existing condition exclusions
  • Dependent coverage to age 26
  • Preventive care coverage requirement
  • Prohibition on rescissions
  • Patient protections

To view more information on the ACA and potential changes, click here.

By |March 9th, 2017|Health care|0 Comments

Keep an Eye on the ACA Rules and Potential Changes

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Are your employees enrolled in a health care plan? Here’s something to consider in your planning: Late in 2015, Congress delayed implementation of a significant tax on high-cost employer-sponsored insurance plans — called the “Cadillac tax” — from 2018 to 2020. Under this rule, when the value of a health plan is more than $10,200 for individual coverage and $27,500 for family coverage, the plans face a 40% tax on the excess amount, but businesses now won’t have to face that concern for a couple more years. Even with this delay, it’s worthwhile keeping this potential tax on your radar screen.

Also, if your company was not subject to the Affordable Care Act for 2015, be aware that the thresholds changed dramatically for 2016. An organization becomes an Applicable Large Employer (ALE) when it employs an average of 50 or more full-time and full-time-equivalent employees on business days during the calendar year. ALEs must provide certain employees with health insurance that meets specific standards, or face significant penalties.  If you have any questions, please contact your Linkenheimer CPA.

By |December 7th, 2016|affordable care act|0 Comments

IRS Reminds Employers of Approaching ACA Information Reporting Due Dates:

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The IRS is encouraging self-insuring employers and Applicable Large Employers (ALEs) to mark their calendars to ensure they meet the new ACA reporting requirements. Self-insuring employers that are not ALEs must provide Form 1095-B (Health Coverage) and ALEs must provide Form 1095-C (Employer-provided Health Insurance Offer and Coverage) to employees by 3/31/16. These forms, plus their related transmittal forms, must be filed with the IRS by 5/31/16, if filing on paper, or 6/30/16, if filing electronically.

If you have any question, please contact your Linkenheimer CPA at 707-546-0272.

By |March 8th, 2016|affordable care act|0 Comments

New PATH Act Provides Major Benefits to Businesses in 2015

With only two weeks remaining until the end of the year, Congress passed the Protecting Americans from Tax Hike (PATH) Act of 2015, which reinstates a large number of tax provisions that had expired in 2014, many of which were not just renewed, but made permanent, while some of the other provisions are extended through 2016, and in some cases, 2019. This gift from Congress comes just in time for the holidays and will have a significant impact on tax payers and businesses. Below are some of the major provisions worth noting. And because California does not conform to some of these tax breaks, please contact us so we can help with your individual and year-end tax planning.

Highlights of the PATH Act:

  • $622 Billion Tax Break Package
  • Over 100 Separate Provisions
  • Permanent Research Tax Credit, Code Sec. 179 Expensing and AOTC (American Opportunity Tax Credit)
  • Five-Year Extension for Bonus Depreciation
  • Delay of Excise Tax on “Cadillac” Plans
  • Moratorium on Medical Device Excise Tax
  • Overall Major IRS Reform

Permanent Extensions for Individuals

  • Earned income tax credit
  • American Opportunity Tax Credit
  • Child tax credit
  • Option to to deduct state and local sales and use taxes instead of state and local income taxes
  • Teachers classroom expense deductions
  • Charitable distributions for IRAs
  • Qualified […]
By |December 29th, 2015|congress, extension, extensions, irs|0 Comments