Benefits Forward » IRS Guidance

Proposed Regulations On ACA’s Comparative Effectiveness Fee

administrator — Thu, 10 May 2012 14:36:52 +0000

The IRS has issued proposed regulations regarding the Affordable Care Act’s comparative effectiveness fee.

Document Excerpt

This document contains proposed regulations that implement and provide guidance on the fees imposed by the Patient Protection and Affordable Care Act on issuers of certain health insurance policies and plan sponsors of certain self-insured health plans to fund the Patient-Centered Outcomes Research Trust Fund. These proposed regulations affect the issuers and plan sponsors that are directed to pay those fees. This document also contains a request for comments and provides notice of public hearing on these proposed regulations.

Link http://www.gpo.gov/fdsys/pkg/FR-2012-04-17/pdf/2012-9173.pdf

Update on Interest Rates

administrator — Thu, 10 May 2012 13:59:11 +0000

Notice 2012-36 provides guidance as to the corporate bond weighted average interest rate and permissible range under Section 412(b)(5)(B)(ii)(II) in effect for plan years beginning before 2008.

Document Excerpt

This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.

Link http://www.irs.gov/pub/irs-drop/n-12-36.pdf

Request for Comments on Large Employer Reporting

administrator — Wed, 02 May 2012 14:46:12 +0000

Notice 2012-33 requests comments on the reporting requirements applicable to large employers under Section 6056 as added by the Affordable Care Act.

Document Excerpt

This notice invites comments on reporting under § 6056 of the Internal Revenue Code for applicable large employers (as defined in § 4980H(c)(2)) that are subject to § 4980H. Section 6056 was enacted by § 1514(a) of the Patient Protection and Affordable Care Act, Pub. L. 111-148 (enacted on March 23, 2010), which was amended by the Health Care and Education Reconciliation Act, Pub. L. 111-152 (enacted on March 30, 2010) (collectively, the Affordable Care Act).

Link http://www.irs.gov/pub/irs-drop/n-12-33.pdf

Request for Comments on Health Care Reporting

administrator — Wed, 02 May 2012 14:41:18 +0000

Notice 2012-32 requests comments on the reporting requirements for employers providing minimum essential coverage.

Document Excerpt

This notice invites comments concerning the reporting requirements under § 6055 of the Internal Revenue Code for health insurance issuers, government agencies, employers that sponsor self-insured plans, and other persons that provide minimum essential coverage to an individual.

Link http://www.irs.gov/pub/irs-drop/n-12-32.pdf

Possible Approaches to Determining Minimum Value

administrator — Wed, 02 May 2012 14:35:55 +0000

The IRS has released Notice 2012-31 which provides proposed methods that ultimate guidance may use to determine whether employer coverage constitutes minimum value under the Affordable Care Act.

Document Excerpt

This notice describes and requests comments on several possible approaches to determining whether health coverage under an eligible employer-sponsored plan, as defined in § 5000A of the Internal Revenue Code (“employer-sponsored plan”), provides minimum value within the meaning of § 36B(c)(2)(C)(ii).

Link http://www.irs.gov/pub/irs-drop/n-12-31.pdf

2013 HSA Limits

administrator — Mon, 30 Apr 2012 13:54:11 +0000

Revenue Procedure 2012-26 provides the 2013 inflation adjusted deduction limits for health savings accounts (HSA).

Document Excerpt

This revenue procedure provides the 2013 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code.

Link http://www.irs.gov/pub/irs-drop/rp-12-26.pdf

Applicability of Normal Retirement Age to Governmental Plans

administrator — Thu, 19 Apr 2012 15:10:24 +0000

Notice 2012-29 announces that the IRS anticipates issuing guidance relating to the applicability of the normal retirement age rules to governmental plans.

Document Excerpt

The IRS and the Treasury Department anticipate issuing guidance relating to the applicability of the normal retirement age rules to governmental plans (as defined in §414(d)). This notice describes and invites public comment on the guidance under consideration, which (a) would clarify that governmental plans that do not provide for inservice distributions before age 62 do not need to have a definition of normal retirement age and (b) would modify the age-50 safe harbor rule for qualified public safety employees. The notice also provides that the IRS and Treasury Department intend to extend the effective date of the regulations relating to distributions from a pension plan upon attainment of normal retirement age for governmental plans.

Link http://www.irs.gov/pub/irs-drop/n-12-29.pdf

Updated Weighted Average Interest Rate

administrator — Fri, 06 Apr 2012 14:22:15 +0000

Notice 2012-28 provides the monthly update to the weighted average interest rate.

Document Excerpt

Link http://www.irs.gov/pub/irs-drop/n-12-28.pdf

COBRA Audit Guide

administrator — Sat, 31 Mar 2012 15:48:03 +0000

IRS’ current COBRA Audit techniques and examination guide.

Document Excerpt

Published Date: March 2012

NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.

Link http://www.irs.gov/businesses/small/article/0,,id=255893,00.html

Employee Plans News

administrator — Wed, 21 Mar 2012 14:40:51 +0000

Most recent IRS Employee Plans News includes a discussion of the guidance encouraging annuities in defined contribution plans as well as a reminder of the need to adopt pre-approved defined benefit plans by April 30.

Document Excerpt

Link http://www.irs.gov/pub/irs-tege/epn_2012_1.pdf