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… will continue to be a priority, despite a change in presidential administrations. IRS Issues Publication 969 The Internal Revenue Service (IRS) annually reviews and periodically updates Publication 969. This document provides general information about the taxation rules associated with health savings accounts (HSAs), medical savings accounts (MSAs), health flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs). The most current version is now available on the IRS website to be used in preparing individuals’ 2024 tax returns. Updated ERISA Civil Penalties The Department of Labor (DOL) recently released updated penalty amounts for violations under the Employee Retirement Income Security Act …

… sought to resolve long-running litigation regarding religious objections to contraceptive coverage. The proposed rules would have rescinded the regulation allowing an exemption to required contraception coverage based on non-religious moral objections, while maintaining an exemption for religious objections. The proposed rules would have established a new individual contraception arrangement that individuals with coverage subject to a religious exemption could use to obtain contraception services at no cost directly from a provider or facility that furnishes contraception services, without any involvement on the part of an objecting entity. The Departments received 44,825 comments in response to the proposed …

… that submitted its GCPCA for the prior attestation year on November 30, 2023, would have an attestation period of December 1, 2023, to October 10, 2024, and an attestation year of 2024. The gag clause prohibition requirements apply to almost all employer-sponsored health plans but not to excepted benefits (e.g., stand-alone dental or vision, health flexible spending account (FSA), employee assistance program [EAP]), retiree-only plans, or account-based plans (e.g., health reimbursement arrangements [HRAs], including individual coverage HRAs [ICHRAs]). While the instructions from the agencies indicate that carriers or third party administrators (TPAs) may attest

… 4980H(b) monthly penalty for a full-time employee receiving a subsidy. The employer contribution for employees who enroll in the employer’s plan may be more than the employer would be required to pay as a penalty under §4980H(b). IRS Private Letter Ruling Allows Employee Allocation of Funds Outside the Cafeteria Plan In private letter ruling (PLR) PLR 202434006, the Internal Revenue Service (IRS) concluded that an employer may allow employees to allocate non-elective, discretionary employer contributions among a 401(k) plan, retiree health reimbursement arrangement (HRA), health savings account (HSA) or educational assistance program (EA Program)

… constituent requesting to retrieve unused funds because the pandemic prevented her from commuting, and changed her routine so she no longer had reimbursable commuting expenses. The letter reminds readers that qualified transportation fringe benefits are not qualified benefits under a cafeteria plan and are not part of a flexible spending arrangement, and further explains that unused salary reduction amounts under an employer’s qualified transportation plan can be carried over to subsequent periods and used for future qualified transportation fringe benefits offered under the plan, so long as the employee does not receive benefits that exceed the maximum excludable amount …

… Washington, D.C. invalidated portions of the final rule, removing the expanded AHP option. Recently, agencies released clarifying regulations, along with a Department of Labor announcement, that formally rescind the 2018 AHP rules and confirmed that in most cases, when unrelated entities offer shared benefits via a multiple employer welfare arrangement (MEWA), the coverage available for a participating member will be based on that particular member’s size, and each participating member will be seen as sponsoring their own separate group benefit plan(s). For the vast majority of employers, these rules will not have any impact, and employers participating …

Let our team help you navigate the ever-changing benefits compliance landscape each month. Check out this month’s latest alerts, additional updates, and resources hot off the press: Employee Benefits Compliance Alerts This month’s Compliance Matters newsletter provides a comprehensive review of the following topics. To obtain your copy, please use the form below to download. DOL Releases Final Rules for STLDI & Fixed Indemnity Plans IRS Revisits Tax Treatment for Certain “Wellness” Arrangements New IRS Guidance for Work-Life Programs CMS Final Rule Limits Medicare Advantage Compensation for Brokers & Agents Change Healthcare Cyber Attack: Update & Next Steps 2024 …