May 05, 2025 Today, IRS issued Revenue Procedure 2025-19, which provides the 2026 cost-of-living contribution and coverage adjustments for HSAs, as required under Code Section 223(g). It also includes the 2026 limit for Excepted Benefit HRAs. The limits for all items increased for 2026. Annual HSA Contribution Amounts 2025 / 2026 Contribution Amounts $4,300 / $4,400 Individual $8,550 / $8,750 Family $1,000 / $1,000 Catch-up Annual Maximum Out-Of-Pocket Limits for HDHP 2025 / 2026 Coverage Levels $8,300 / $8,500 Individual $16,600 / $17,000 Family Annual Minimum Deductible Amount Limits for HDHP 2025 / 2026 Coverage Levels $1,650 / $1,700 Individual $3,300 / $3,400 Family Excepted Benefit HRA 2025 / 2026 Contribution Limits $2,150 / $2,200 For a copy of Revenue… Read More
On January 16, 2025, the IRS released Revenue Ruling 2025-4 which provides guidance on the employment tax treatment of contributions and benefits paid under state paid family and medical leave (PFML) programs. Currently, 14 states and D.C. have mandatory PFML programs. This ruling is effective for payments made on or after January 1, 2025, but there is important transition relief for 2025, discussed below. Note: This ruling only discusses contributions and benefits of state-run programs and does not discuss the Federal tax treatment of employers’ or employees’ contributions to private or self-insurance family or medical leave plans or the amounts received by… Read More
Last week, Congress passed the Paperwork Burden Reduction Act and the Employer Reporting Improvement Act (“Act”). Both Acts significantly alter ACA reporting requirements. President Biden is expected to sign both Acts soon. Paperwork Burden Reduction Act This Act modifies provisions under the Patient Protection and Affordable Care Act so that employers and health insurance providers are no longer required to send tax forms to covered individuals showing proof of minimum essential coverage (1095-B and 1095-C tax forms) unless a form is requested. Currently, employers and health insurers that provide minimum essential coverage must report this information for each covered individual to… Read More
December 3, 2024 Yesterday, the IRS announced in Notice 2024-83 that the adjusted applicable amount for the Patient-Centered Outcomes Research (PCORI) Fee is $3.47 for policy or plan years ending on or after October 1, 2024, and before October 1, 2025. The adjusted applicable dollar amount for the PCORI fee for policy years and plan years that ended on or after October 1, 2023, and before October 1, 2024 was $3.22. For a copy of the Notice 2024-83, please click on the link below: https://www.irs.gov/irb/2024-49_IRB#NOT-2024-83
On Friday, November 1, 2024, the Internal Revenue Service announced in Notice 2024-80 the cost of living adjustments applicable to dollar limitations for qualified retirement plans, and other limits for tax year 2025. The important limits are provided below: 401(k), 403(b) & 457(b) deferrals $23,500 Catch-up 401(k), 403(b) & 457(b) $7,500 415(c) Limit $70,000 Annual Compensation Limit $350,000 HCE Compensation Limit $160,000 Maximum Pension at age 62 $280,000 SIMPLE Deferrals $16,500 SIMPLE Catch-up $3,500 SEP Minimum Compensation $750 Key Employee Limit, Officer Test $230,000 IRAs for individuals age 49 & below $7,000 IRAs for individuals age 50 & above $8,000 The 2024… Read More
