Taxation and Health Insurance

Size: px
Start display at page:

Download "Taxation and Health Insurance"

Transcription

1 Thorley Wealth Management, Inc. Elizabeth Thorley, MS, CFP, CLU CEO & President 1478 Marsh Road Pittsford, NY Fax: Taxation and Health Insurance Page 1 of 5, see disclaimer on final page

2 Taxation and Health Insurance What are the tax issues associated with health insurance? Two aspects of your health insurance plan may affect your income tax calculations: the premiums and the benefits. There are many variables that impact the tax treatment of your health insurance premiums and benefits. And if you don't have qualifying health insurance, you may face a penalty tax beginning in Taxation and premiums Employer-paid premiums are excluded from income In general, you can exclude from your income for tax purposes any health insurance premiums (including Medicare) paid by your employer. The premiums can be for insurance covering you, your spouse, and any dependents. This rule holds true regardless of whether premiums are for an employer-sponsored group policy or an individual policy. You can even exclude premiums your employer pays when you are laid off from your job. Caution: It is worth noting a few exceptions to this general rule. First, a partner can't exclude from income any premiums paid by the partnership. Second, a 2 percent S corporation shareholder can't exclude any premiums paid by an S corporation. Third, an employee is taxed on the value of employer-provided health benefits for the employee's domestic partner, unless the partner is a dependent of the employee. Employer reimbursement of premiums is typically not taxable income If you pay the premiums on your health insurance policy and receive a reimbursement from your employer for these premiums, the IRS has ruled that the amount of the reimbursement is not taxable income. However, if your employer simply pays you a lump sum that may be used to pay health insurance premiums but is not required to be used for this purpose, this amount is taxable. Self-paid premiums are typically not deductible The deductibility of health insurance premiums follows the rules for deducting medical expenses. If you itemize deductions and your unreimbursed medical expenses exceed 7.5 percent of your adjusted gross income (AGI) in any tax year, you may deduct the amount by which your unreimbursed medical expenses exceed this 7.5 percent threshold. Unreimbursed medical expenses include, among other things, the cost of prescribed drugs and premiums for medical insurance that provides for reimbursement or indemnity for medical care. Tip: Premiums for Medicare Part B, dental coverage, contact lens coverage, and prescription coverage can all be included when determining whether your unreimbursed medical expenses qualify for the deduction. Technical Note: If you pay the premiums for a policy that offers both medical and nonmedical benefits, the medical portion is deductible if: The charge for the medical portion is reasonable, given the overall premium The charge for the medical portion is set forth specifically in either the policy or a statement issued by the insurance company Caution: Premium payments for disability income insurance, life insurance, and accidental death and dismemberment insurance aren't deductible. Tip: Payments for qualified long-term care insurance are deductible, subject to limits based on age. These limits are adjusted annually for inflation. Page 2 of 5, see disclaimer on final page

3 Caution: Starting in 2013, the 7.5 percent floor on itemized deductions for medical expenses is increased to 10 percent of AGI. However, taxpayers age 65 and older will remain subject to the lower 7.5 percent floor until There are special rules for the self-employed In addition to the general rule of deducting premiums as medical expenses, self-employed individuals can deduct their health insurance premiums as business expenses. These deductions aren't limited to amounts over 7.5 percent of AGI as are medical expense deductions; they are limited, though, to amounts less than an individual's earned income from the business for which the health insurance plan was established. The definition of self-employed individuals includes partners and 2 percent S corporation shareholders. If you meet the definition of a self-employed individual, you can deduct 100 percent of the premiums for insuring yourself, your spouse, and your dependents. Caution: To claim this business expense deduction, you must show a net profit for the year and can't be eligible to participate in your employer's or your spouse's employer's subsidized health plan. If you are eligible for employer-subsidized health insurance in any calendar month, you can't claim the deduction for that month. Taxation and benefits Reimbursement for benefits received under an employer-sponsored plan are typically excludable You can generally exclude from income reimbursements for medical expenses you receive from your employer's health insurance plan. These reimbursements can be for your own medical expenses or those of your spouse or dependents. The exclusion applies regardless of whether your employer provides group insurance or individual insurance or serves as a self-insurer. The reimbursements can be for actual medical care or for insurance premiums on your own health insurance. Note that there is no dollar limit on the amount of tax-free medical reimbursements you can receive in a year. Caution: If your total reimbursements for the year exceed the total of your actual medical expenses, you may have to include at least some of the excess in your income. If you pay 100 percent of the insurance premium or the cost of a self-insured plan, you will still be able to exclude this excess reimbursement. If, however, your employer makes contributions for some or all of your health insurance, you must include a portion of the excess that corresponds to the extent of your employer's contributions. Caution: You can't exclude reimbursements for medical expenses that you deducted last year or some prior year. Example(s): Hal had surgery to repair torn ligaments in his knee in October of Year 1. He paid his bill in December of Year 1 and claimed a deduction on his Year 1 income taxes. He filed a claim with his health insurance in February of Year 2 and received reimbursement in August of Year 2. Hal can't exclude these insurance benefits from taxable income in Year 2. He must include them in his Year 2 income to the extent of his deduction in Year 1. Benefits received under an individual plan are typically excludable You can also exclude benefits paid for medical expenses under an insurance plan for which you pay the premiums. This situation might arise if your employer offers a health insurance plan but doesn't pay the premium for you, or if you don't receive health insurance from an employer and simply purchase it for yourself. Nondiscrimination rules for self-insured plans for employees An employer that offers a self-insured plan can't discriminate in favor of highly compensated individuals concerning either plan eligibility or the level of benefits. If it does, these highly compensated employees won't be able to exclude all their benefits from income. In general, a highly compensated individual falls into one or more of these three categories: One of the five highest paid officers Page 3 of 5, see disclaimer on final page

4 Someone owning more than 10 percent in value of the business's shares Someone whose salary is in the highest 25 percent at the business According to the Internal Revenue Code, a plan discriminates as to eligibility unless it satisfies one of these two requirements: It benefits at least 70 percent of all employees or at least 80 percent of all the eligible employees where at least 70 percent of all employees are eligible to benefit It benefits employees under a classification that the Internal Revenue Service has found doesn't discriminate in favor of highly compensated individuals A plan discriminates with respect to benefits unless it offers the same benefits to highly compensated employees and all other participants. Tip: The nondiscrimination rules are quite technical; an in-depth treatment is beyond the scope of this discussion. If you think they might apply to your situation, consult additional sources for more details. Tax on individuals without adequate health coverage Adequate health coverage Beginning 2014, U.S. citizens and legal residents will generally be required to maintain adequate health-care coverage, or face a penalty tax. Acceptable coverage will include: Penalty tax Government-sponsored programs including Medicare, Medicaid, Children's Health Insurance Program (CHIP), coverage for members of the U.S. military, veterans health care, and health care for Peace Corps volunteers Eligible employer-sponsored plans including governmental plans, church plans, grandfathered plans, and other group health plans offered in the small or large group market within a state Plans in the individual market Grandfathered group health plans Other coverage recognized by the U.S. Department of Health and Human Services and the Treasury Department The penalty tax (which takes full effect in 2016) will generally be the greater of $695 per year for each uninsured adult in a household, up to a maximum of three times that amount ($2,085) per family, or 2.5% of household income exceeding a specified threshold (the amount required to necessitate filing a federal income tax for the year). The tax will be phased in: Beginning in 2014, the penalty tax is the greater of $95 per uninsured (up to $285 per family) or one percent of household income exceeding the threshold. In 2015, the amounts will be $325 per uninsured (up to $975 per family) and 2 percent of household income. Tip: An additional cap on the penalty tax applies. The penalty tax will not exceed the national average annual premium for bronze level health plans offered through exchanges (the new health insurance exchange programs being established in accordance with the health-care reform legislation) for a household of similar size. Tip: Families will pay half the appropriate dollar amount for uninsured individuals under age 18. Tip: Beginning after 2016, the maximum penalty tax will be increased annually by a cost of living adjustment. Page 4 of 5, see disclaimer on final page

5 Securities and advisory services offered through Commonwealth Financial Network member a Registered Investment Adviser. Fixed insurance products and services offered through Thorley Wealth Management, Inc. This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult a tax or legal professional regarding their individual situations. Thorley Wealth Management, Inc. Elizabeth Thorley, MS, CFP, CLU CEO & President 1478 Marsh Road Pittsford, NY Fax: Page 5 of 5 Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2013

Health-Care Reform. Begley Insurance Group, Inc. Mary Angelo 5225 Old Orchard Rd. Skokie, IL 60077 800-867-7074

Health-Care Reform. Begley Insurance Group, Inc. Mary Angelo 5225 Old Orchard Rd. Skokie, IL 60077 800-867-7074 Begley Insurance Group, Inc. Mary Angelo 5225 Old Orchard Rd. Skokie, IL 60077 800-867-7074 Health-Care Reform August 14, 2012 Page 1 of 8, see disclaimer on final page One primary goal of the Patient

More information

IMPACT OF HEALTH CARE REFORM ON INDIVIDUAL AND SMALL BUSINESS TAXES

IMPACT OF HEALTH CARE REFORM ON INDIVIDUAL AND SMALL BUSINESS TAXES IMPACT OF HEALTH CARE REFORM ON INDIVIDUAL AND SMALL BUSINESS TAXES ATLANTA ASHEVILLE BIRMINGHAM CHICAGO DALLAS DENVER JACKSONVILLE LOS ANGELES MELBOURNE MEMPHIS MIAMI MINNEAPOLIS NEW YORK ORLANDO PHOENIX

More information

Health Savings Accounts

Health Savings Accounts Raymond James & Associates, Inc. Anne Bedinger, WMS Vice President, Investments 2255 Glades Road, Suite 120-A Boca Raton, FL 33431 561-981-3661 800-327-1055 Anne.Bedinger@RaymondJames.com www.annebedinger.com

More information

Vertex Wealth Management LLC 10/22/2013

Vertex Wealth Management LLC 10/22/2013 Vertex Wealth Management LLC Michael J. Aluotto, CRPC President Private Wealth Manager 1325 Franklin Ave., Ste. 335 Garden City, NY 11530 516-294-8200 mjaluotto@1stallied.com Retirement Basics 10/22/2013

More information

Health Care Reform Legislation and You

Health Care Reform Legislation and You (Customizable space for CPA Firm Logo to go here) Health Care Reform Legislation and You Timelines and Implications of the New Law for Individuals Updated as of January 2011 The Health Care Reform Legislation

More information

Health Care Reform: Health Insurance Marketplace FAQs

Health Care Reform: Health Insurance Marketplace FAQs From Filice Insurance Health Care Reform: Health Insurance Marketplace FAQs What is a Health Insurance Marketplace? The Health Insurance Marketplace (Marketplace) is a way to find health coverage that

More information

Instructions for Form 8965

Instructions for Form 8965 Department of the Treasury Internal Revenue Service Instructions for Form 8965 Health Coverage Exemptions (and instructions for figuring your shared responsibility payment) For each month you must either:

More information

Long-term Care Insurance Basics

Long-term Care Insurance Basics Long-term Care Insurance Basics Long-term care insurance coverage is intended to provide you with some certainty that adequate nursing home and home health care services will be available when needed.

More information

Health Care Reform and You

Health Care Reform and You Health Care Reform and You Timelines and Implications of the Law for Individuals Updated as of January 2015 Health Care Reform and You The Patient Protection and Affordable Care Act and the Health Care

More information

Tax Implications of Health Care Reform

Tax Implications of Health Care Reform Tax Implications of Health Care Reform Presented by: Art Sparks, CPA Partner Certified Public Accountants Summary Summary The Patient Protection and Affordable Care Act (PPACA) and the companion Health

More information

Vertex Wealth Management LLC 12/26/2012

Vertex Wealth Management LLC 12/26/2012 Vertex Wealth Management LLC Michael J. Aluotto, CRPC President Private Wealth Manager 1325 Franklin Ave., Ste. 335 Garden City, NY 11530 516-294-8200 mjaluotto@1stallied.com Roth IRA Conversions 12/26/2012

More information

Health Care Reform and You

Health Care Reform and You Health Care Reform and You Timelines and Implications of the Law for Individuals Updated as of December 2013 Health Care Reform and You The Patient Protection and Affordable Care Act and the Health Care

More information

EMPLOYEE S GUIDE TO HEALTH CARE REFORM S TAX CREDITS

EMPLOYEE S GUIDE TO HEALTH CARE REFORM S TAX CREDITS The EMPLOYEE S GUIDE TO HEALTH CARE REFORM S TAX CREDITS Calculate Your Health Insurance Tax Credit 2 Introduction Beginning in 2014, massive tax credits will become available to help individuals buy health

More information

Answers about. Health Care REFORM. for your business

Answers about. Health Care REFORM. for your business Answers about Health Care REFORM for your business Since the time of its enactment in 2010, the health care reform law has remained controversial at least in part due to a constitutional challenge to the

More information

IRS Proposes Rules for Federal Subsidy of Health Insurance Purchased in State Exchanges

IRS Proposes Rules for Federal Subsidy of Health Insurance Purchased in State Exchanges IRS Proposes Rules for Federal Subsidy of Health Insurance Purchased in State Exchanges August 2011 The Internal Revenue Service (IRS) on August 12, 2011 issued proposed regulations relating to the federal

More information

Metropolitan Life Insurance Company ( MetLife ) ExecutiveCare SM

Metropolitan Life Insurance Company ( MetLife ) ExecutiveCare SM Metropolitan Life Insurance Company ( MetLife ) ExecutiveCare SM MetLife s Long-Term Care Insurance Executive Benefit Program ADF# 1665.06 MetLife Investors L06079UZ9(exp0707)MLIC-LD PEANUTS United Feature

More information

The Patient Protection and Affordable Care Act

The Patient Protection and Affordable Care Act Private Wealth Management Products & Services March 2010 The Patient Protection and Affordable Care Act Health care act includes variety of tax changes President Obama signed the Patient Protection and

More information

Health Care Reform and You

Health Care Reform and You Health Care Reform and You Timelines and Implications of the Law for Individuals Updated as of February 2016 Health Care Reform and You The Patient Protection and Affordable Care Act and the Health Care

More information

Health Care Reform Legislation and You

Health Care Reform Legislation and You Health Care Reform Legislation and You Timelines and Implications of the New Law for Individuals Updated as of May 2011 Health Care Reform Legislation and You The Patient Protection and Affordable Care

More information

FREQUENTLY ASKED QUESTIONS HEALTH SAVINGS ACCOUNTS

FREQUENTLY ASKED QUESTIONS HEALTH SAVINGS ACCOUNTS FREQUENTLY ASKED QUESTIONS HEALTH SAVINGS ACCOUNTS What is an HSA? A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses. Tax-deductible Contributions

More information

Advisory. The Health Care Reform Bill: How Will Its Tax Provisions Impact You and Your Business? April 2010. Impact on Employers

Advisory. The Health Care Reform Bill: How Will Its Tax Provisions Impact You and Your Business? April 2010. Impact on Employers certified public accountants business consultants Advisory April 2010 The Health Care Reform Bill: How Will Its Tax Provisions Impact You and Your Business? The recently passed Patient Protection and Affordable

More information

ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567

ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 WHAT HEALTH CARE REFORM MEANS FOR YOUR BUSINESS Your promotional imprint here and/or back cover. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 The Patient Protection

More information

LTC Insurance Income Taxation

LTC Insurance Income Taxation LTC Insurance Income Taxation F Educational Purposes Only Not f Use in Sales Situations This publication illustrates the federal income tax treatment of qualified long-term care ( LTC ) insurance under

More information

Tax Implications of the Affordable Care Act

Tax Implications of the Affordable Care Act Year-by-Year Guide Tax Implications of the Affordable Care Act 1 Year-by-Year Guide: Tax Implications of the Affordable Care Act Introduction The Patient Protection and Affordable Care Act, commonly referred

More information

The Insurance Mandates of the Affordable Care Act

The Insurance Mandates of the Affordable Care Act 1 A. Affordable Care Act Individual Mandate The Insurance Mandates of the Affordable Care Act 1. All citizens of the United States are subject to the individual mandate as are all permanent residents and

More information

Table of contents. 2 Federal income tax rates. 12 Required minimum distributions. 4 Child credits. 13 Roths. 5 Taxes: estates, gifts, Social Security

Table of contents. 2 Federal income tax rates. 12 Required minimum distributions. 4 Child credits. 13 Roths. 5 Taxes: estates, gifts, Social Security 2015 Tax Guide Table of contents 2 Federal income tax rates 4 Child credits 5 Taxes: estates, gifts, Social Security 6 Rules on retirement plans 8 Saver s credit 12 Required minimum distributions 13 Roths

More information

Prudential s Long Term Care Insurance Tax Guide

Prudential s Long Term Care Insurance Tax Guide Prudential s Long Term Care Insurance Tax Guide Table of Contents Contributory arrangement 3 Corporation (C-corporation or entity with a 501 trust providing coverage to its employees) 5 Individual who

More information

IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage

IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage By Seth Perretta, Joel Wood and Matthew Fornataro of Crowell & Moring LLP On March 29, 2011, the

More information

The IRS and its 46 new powers to enforce ObamaCare Galen Institute

The IRS and its 46 new powers to enforce ObamaCare Galen Institute BLOG» The IRS and its 46 new powers to enforce ObamaCare June 5, 2013 The power granted to the IRS to enforce ObamaCare s mandates, taxes, penalties, reporting, and other requirements is unprecedented.

More information

SUMMARY OF GUIDE CONTENTS... 1 HIGHLIGHTS OF TAX-ADVANTAGED PLANS... 2 EMPLOYEE SALARY REDUCTION PLANS... 5

SUMMARY OF GUIDE CONTENTS... 1 HIGHLIGHTS OF TAX-ADVANTAGED PLANS... 2 EMPLOYEE SALARY REDUCTION PLANS... 5 This Guide is for informational and educational purposes only. It does not constitute legal advice or a comprehensive guide to issues to be considered by employers in establishing tax-advantaged benefits

More information

Offering Employee Benefits

Offering Employee Benefits Besselman & Associates Patricia Ann Besselman CFP James M. Besselman, CLU, ChFC 111 Veterans Blvd. Ste. 360 Metairie, LA 70005 504-831-3506 pbesselman@besselmanandassoc.com Offering Employee Benefits Page

More information

IRAs. AKD Consultants Adam Dworkin CPA 188 Whiting Street Suite 10 Hingham, MA 02043 781-556-5554 Adam@AKDConsultants.com

IRAs. AKD Consultants Adam Dworkin CPA 188 Whiting Street Suite 10 Hingham, MA 02043 781-556-5554 Adam@AKDConsultants.com AKD Consultants Adam Dworkin CPA 188 Whiting Street Suite 10 Hingham, MA 02043 781-556-5554 Adam@AKDConsultants.com IRAs October 01, 2013 Page 1 of 8, see disclaimer on final page Both traditional and

More information

Prescribed Side Effects of the Patient Protection and Affordable Care Act (PPACA): Healthcare Reform Update

Prescribed Side Effects of the Patient Protection and Affordable Care Act (PPACA): Healthcare Reform Update August 14, 2013 Presented by: Jay Hutto, CPA Prescribed Side Effects of the Patient Protection and Affordable Care Act (PPACA): Healthcare Reform Update Click HERE to listen to webinar. August 14, 2013

More information

Health Reimbursement Arrangements

Health Reimbursement Arrangements Health Reimbursement Arrangements Health Reimbursement Arrangements (HRAs) are plans designed to help employers and employees lower health care costs. Allowed under sections 105 and 106 of the Internal

More information

Christy Tinnes, Brigen Winters and Christine Keller, Groom Law Group, Chartered

Christy Tinnes, Brigen Winters and Christine Keller, Groom Law Group, Chartered Preparing for Health Care Reform A Chronological Guide for Employers This Article provides an overview of the major provisions of health care reform legislation affecting employers and explains the requirements

More information

Health Savings Accounts

Health Savings Accounts HSAs Health Savings Accounts 2014 and 2015 Limits Questions & Answers What is a Health Savings Account (HSA)? An HSA is a tax-exempt trust or custodial account established for the purpose of paying medical

More information

PR SPERITY, INC Smart Data Confident Decisions Better Results

PR SPERITY, INC Smart Data Confident Decisions Better Results PR SPERITY, INC Smart Data Confident Decisions Better Results Health Care Reform and You Timelines and Implications of the Law for Individuals Updated as of August 2012 Health Care Reform and You The

More information

PREPARE FOR AFFORDABLE CARE ACT NOW & AVOID PENALTIES!

PREPARE FOR AFFORDABLE CARE ACT NOW & AVOID PENALTIES! PREPARE FOR AFFORDABLE CARE ACT NOW & AVOID PENALTIES! Ken Laks, Tax Specialist Eric Dielmann, Employee Benefit Specialist PRESENTED BY WHY WORRY? Employer Mandate has Been Postponed until 2015! Guaranteed

More information

State Health Reform Assistance Network

State Health Reform Assistance Network State Health Reform Assistance Network Charting the Road to Coverage ISSUE BRIEF February 2014 Consumer Assistance Resource Guide: Minimum Essential Coverage Prepared by Manatt Health Solutions Early evidence

More information

Life Insurance and Estate Planning

Life Insurance and Estate Planning EBNY Financial, LLC Kevin Kautzmann, CFP Certified Financial Planner 80 Fifth Avenue #1403 New York, NY 212-269-2625 kevin@ebnyfinancial.com www.ebnyfinancial.com Life Insurance and Estate Planning Page

More information

Frequently Asked Questions State and Federal Coverage Expansion For Older Age Children August 31, 2010

Frequently Asked Questions State and Federal Coverage Expansion For Older Age Children August 31, 2010 Frequently Asked Questions State and Federal Coverage Expansion For Older Age Children August 31, 2010 Both the federal government, through the Affordable Care Act, and the state government, through the

More information

The Federal Thrift Savings Plan

The Federal Thrift Savings Plan Vertex Wealth Management, LLC Michael J. Aluotto, CRPC President Private Wealth Manager 1325 Franklin Ave., Ste. 335 Garden City, NY 11530 516-294-8200 mjaluotto@1stallied.com www.vertexwm.com The Federal

More information

Appropriate Checklists for Year-End Tax Planning

Appropriate Checklists for Year-End Tax Planning LPL Financial Dennis R. Marvin, CFP Branch Manager 28025 Clemens Road Suite 2A Westlake, OH 44145 440-250-9990 Fax: 440-250-9986 dennis@marvinwealth.com www.marvinwealth.com Appropriate Checklists for

More information

http://www.iwpubs.com/articlemanagement/articlemanagementarticlepreview.asp?isarc...

http://www.iwpubs.com/articlemanagement/articlemanagementarticlepreview.asp?isarc... Page 1 of 6 7 Things To Know About Employer-Provided Health Insurance October, 2013 Benefits Pro No one agrees on the exact numbers, but it s a safe bet to say that over the next few years millions of

More information

Health Care Reform: 2015 Refresher of the Affordable Care Act (ACA)

Health Care Reform: 2015 Refresher of the Affordable Care Act (ACA) Health Care Reform: 2015 Refresher of the Affordable Care Act (ACA) Brought to you by Aon Presented by: Ryan Comstock & Shawna Brown This information is provided for informational purposes only and is

More information

Benefit Plans for Small Businesses

Benefit Plans for Small Businesses EBNY Financial, LLC Kevin Kautzmann, CFP Certified Financial Planner 80 Fifth Avenue #1403 New York, NY 212-269-2625 kevin@ebnyfinancial.com www.ebnyfinancial.com Benefit Plans for Small Businesses Page

More information

Caution: Special rules apply to certain distributions to reservists and national guardsmen called to active duty after September 11, 2001.

Caution: Special rules apply to certain distributions to reservists and national guardsmen called to active duty after September 11, 2001. Thorsen Clark Tracey Wealth Management 301 East Pine Street Suite 1100 Orlando, FL 32801 407-246-8888 407-897-4427 thorsenclarktraceywealthmanagement@raymondjames.com tctwealthmanagement.com Roth IRAs

More information

Transamerica Financial Life Insurance Company. Facts for Agents and Producers 2014 Edition

Transamerica Financial Life Insurance Company. Facts for Agents and Producers 2014 Edition Transamerica Life Insurance Company Transamerica Financial Life Insurance Company Frequently Asked Tax uestions for Long Term Care Insurance Facts for Agents and Producers 2014 Edition ICC13 TLC3 A TG

More information

Simplified Employee Pension (SEP)

Simplified Employee Pension (SEP) Marblehead Financial Services Bill Bartin, CFP Located at Marblehead Bank 21 Atlantic Avenue Marblehead, MA 01945 781-476-0600 781-715-4629 wbartin@infinexgroup.com Simplified Employee Pension (SEP) Page

More information

Timeline of New Health Care Law and Its Impact on American Businesses

Timeline of New Health Care Law and Its Impact on American Businesses Timeline of New Health Care Law and Its Impact on American Businesses Summaries of the Patient Protection and Affordable Health Care Act (Public Law 111-148) Health Care and Education Reconciliation Act

More information

And Changes under Healthcare Reform affecting businesses

And Changes under Healthcare Reform affecting businesses And Changes under Healthcare Reform affecting businesses 1 Individual Mandate 2 First there were two choices Under the Affordable Care Act every individual must have Minimum Essential Healthcare Coverage

More information

Frequently Asked Questions

Frequently Asked Questions Frequently Asked Questions What is a Health Savings Account (HSA)? A Health Savings Account (HSA) is an alternative to traditional health insurance; it is a savings product that offers a different way

More information

FAQs: Health Savings Accounts (HSA)

FAQs: Health Savings Accounts (HSA) FAQs: Health Savings Accounts (HSA) Thank you for choosing NTA Life Business Servicess Group, Inc. to be your HSA provider. We want to make it easy for you to manage and maintain your Health Savings Account,

More information

Internal Revenue Code Section 79 Imputed Income and the Straddle Rule

Internal Revenue Code Section 79 Imputed Income and the Straddle Rule Internal Revenue Code Section 79 Imputed Income and the Straddle Rule InsurancePoint.com Phone: 801-478-1700 Fax: 801-478-1710 181 East 5600 South, Suite 240 Salt Lake City, UT 84107 Table of Contents

More information

Raymond James Financial Services September 06, 2011

Raymond James Financial Services September 06, 2011 Raymond James Financial Services Bob Alft Wealth Advisor 220 E. Nine Mile Road Pensacola, FL 32534 850-479-7190 bob.alft@raymondjames.com www.raymondjames.com/bobalft Understanding IRAs Understanding IRAs

More information

TAX-QUALIFIED LONG TERM CARE INSURANCE

TAX-QUALIFIED LONG TERM CARE INSURANCE TAX-QUALIFIED LONG TERM CARE INSURANCE If you have questions, call the Genworth Advanced Marketing team at 800 532.9116 or e-mail us at advanced.marketing@genworth.com 2008 TAX INFORMATION Underwritten

More information

Overview of Tax Aspects of Select Health Care Reform Proposals

Overview of Tax Aspects of Select Health Care Reform Proposals Overview of Tax Aspects of Select Health Care Reform Proposals 1 2 BASED ON 3 IN GENERAL The President s proposal would eliminate the current exclusion for employer-subsidized accident and health In lieu

More information

WHAT HEALTH CARE REFORM

WHAT HEALTH CARE REFORM WHAT HEALTH CARE REFORM MEANS FOR YOUR BUSINESS Celebrating A Tradition our of Excellence 85th Year of Since Excellence 1924 2322 Tremont Drive Baton Rouge, LA 70809 225.928.4770 www.htbcpa.com 178 Del

More information

It goes by many names: Patient Protection and Affordable Care Act (PPACA) or ACA or Obama Care or simply Healthcare Reform.

It goes by many names: Patient Protection and Affordable Care Act (PPACA) or ACA or Obama Care or simply Healthcare Reform. WHAT IS HEALTHCARE REFORM? Healthcare Reform (HCR) is a law passed by Congress that provides many different requirements. A very important aspect of the law is that it is designed to provide individuals

More information

Employee Benefits Report

Employee Benefits Report Employee Benefits Report 900 Ashbourne Way Suite B Schwenksville, PA 19473 sales@millennium-tpa.com 610-222-9400 fax: 610-222-9448 www.millennium-tpa.com Affordable Care Act October 2013 Volume 11 Number

More information

Health Reform in a Nutshell: What Small Businesses Need to Know Now.

Health Reform in a Nutshell: What Small Businesses Need to Know Now. Health Reform in a Nutshell: What Small Businesses Need to Know Now. With the passage of the most significant reform of America s modern-day health care system, many small business owners and human resources

More information

SIMPLE IRA Plan. Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.

SIMPLE IRA Plan. Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa. Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.com SIMPLE IRA Plan Page 1 of 11, see disclaimer on final page SIMPLE IRA Plan What

More information

Flexible Spending Accounts

Flexible Spending Accounts Flexible Spending Accounts POLICY GUIDE Flexible spending accounts are arrangements that allow employees to pay for qualified health care or dependent care expenses on a pre-tax basis. Employers may offer

More information

Health Reimbursement Arrangements (HRA) As a Tax Free Employee Benefit

Health Reimbursement Arrangements (HRA) As a Tax Free Employee Benefit CHILDCARE SOLUTIONS 2101 Richmond Road Beachwood, Ohio 44122 216-831-7333 info@4inhomecare.com Health Reimbursement Arrangements (HRA) As a Tax Free Employee Benefit Internal Revenue Service Department

More information

Life Insurance as an Employee Benefit

Life Insurance as an Employee Benefit Life Insurance as an Employee Benefit What is it? Life insurance is a contract whereby the insurance company pays a sum specified within the contract to a named beneficiary upon the death of the insured,

More information

Group Health Insurance: A Valued Employee Benefit

Group Health Insurance: A Valued Employee Benefit Vertex Wealth Management, LLC Michael J. Aluotto, CRPC President Private Wealth Manager 1325 Franklin Ave., Ste. 335 Garden City, NY 11530 516-294-8200 mjaluotto@1stallied.com Group Health Insurance: A

More information

LIUNA Health Care Conference: Responses To Submitted Questions

LIUNA Health Care Conference: Responses To Submitted Questions LIUNA Health Care Conference: Responses To Submitted Questions Again, thank you to all who attended the LIUNA Health Care Conference in March 2013. During the conference, attendees were encouraged to leave

More information

GUIDE TO HEALTH CARE REFORM S TAX PENALTIES

GUIDE TO HEALTH CARE REFORM S TAX PENALTIES The GUIDE TO HEALTH CARE REFORM S TAX PENALTIES Calculate Your Health Insurance Tax Penalty 2 Introduction The Affordable Care Act (ACA) requires certain employers and employees to purchase health insurance

More information

Affordable Care Act FAQs Individuals

Affordable Care Act FAQs Individuals Affordable Care Act FAQs Individuals The Supreme Court s landmark decision on the Affordable Care Act (ACA) has resulted in uncertainties among many individuals, regardless of their tax bracket, personal

More information

Kitsap Bank Health Savings Account Guide. A tax-smart way for you to manage growing healthcare costs.

Kitsap Bank Health Savings Account Guide. A tax-smart way for you to manage growing healthcare costs. Kitsap Bank Health Savings Account Guide A tax-smart way for you to manage growing healthcare costs. At Kitsap Bank, we believe that helping you prepare for the rising cost of health care is key to helping

More information

Health Care Reform How it Will Affect Employers and their Group Health Plans. Benecon Comments and Observations

Health Care Reform How it Will Affect Employers and their Group Health Plans. Benecon Comments and Observations Health Care Reform How it Will Affect Employers and their Group Health Plans This Health Care Reform Summary applies to all employers (including government and church plans) that provide health coverage

More information

Health Savings Accounts

Health Savings Accounts Health Savings Accounts I. What Are HSAs and Who Can Have Them? What is an HSA? An HSA is a tax-exempt trust or custodial account established exclusively for the purpose of paying qualified medical expenses

More information

Treasury Department Proposes Rule Implementing Premium Tax Credits Under the Affordable Care Act

Treasury Department Proposes Rule Implementing Premium Tax Credits Under the Affordable Care Act AUGUST 17 2011 Treasury Department Proposes Rule Implementing Premium Tax Credits Under the Affordable Care Act BY ALDEN J. BIANCHI, MINTZ LEVIN The Patient Protection and Affordable Care Act 1 (the Act)

More information

What s News in Tax Analysis That Matters from Washington National Tax

What s News in Tax Analysis That Matters from Washington National Tax What s News in Tax Analysis That Matters from Washington National Tax The Impact of the Affordable Care Act on International Assignees and Their Health Care Plans Employers and individuals in the United

More information

Understanding IRAs. Thad Johnson, AIF, MBA 222 2nd Ave SE Hutchinson, MN 55350 320-587-3444 thad.johnson@flagship-advisors.com

Understanding IRAs. Thad Johnson, AIF, MBA 222 2nd Ave SE Hutchinson, MN 55350 320-587-3444 thad.johnson@flagship-advisors.com Thad Johnson, AIF, MBA 222 2nd Ave SE Hutchinson, MN 55350 320-587-3444 thad.johnson@flagship-advisors.com Understanding IRAs Page 1 of 5, see disclaimer on final page Understanding IRAs An individual

More information

HEALTH CARE ACT TAX OVERVIEW INDIVIDUALS. Expanded Medicare taxes and other changes make planning critical

HEALTH CARE ACT TAX OVERVIEW INDIVIDUALS. Expanded Medicare taxes and other changes make planning critical HEALTH CARE ACT TAX OVERVIEW INDIVIDUALS Expanded Medicare taxes and other changes make planning critical 1 The agenda The health care act s tax impact on individuals Medicare tax increase on earned income

More information

The Income Tax Effects of Health Care Reform on Small Businesses and Real Estate Investors

The Income Tax Effects of Health Care Reform on Small Businesses and Real Estate Investors The Income Tax Effects of Health Care Reform on Small Businesses and Real Estate Investors BY J. RUSSELL HARDIN, PH.D. INTRODUCTION IF REAL ESTATE INVESTORS AND SMALL BUSINESS OWNERS intend to maximize

More information

Tax Subsidies for Health Insurance An Issue Brief

Tax Subsidies for Health Insurance An Issue Brief Tax Subsidies for Health Insurance An Issue Brief Prepared by the Kaiser Family Foundation July 2008 Tax Subsidies for Health Insurance Most workers pay both federal and state taxes for wages paid to them

More information

Traditional IRAs and Roth IRAs

Traditional IRAs and Roth IRAs Securities America Michael Sullivan, CFP 41 West Bridge St. Suite D Dublin, OH 43017 (614) 734-WLTH(9584) mikes@wealthcoachfinancial.com wealthcoachfinancial.com Traditional IRAs and Roth IRAs Page 1 of

More information

Health Care Reform Update

Health Care Reform Update Beginning in 2018, the Patient Protection and Affordable Care Act imposes an excise tax on high-cost health plans. In addition to being a way to raise revenue for the government, the reason for this provision

More information

Whether to Buy Health Coverage or Pay the Penalty

Whether to Buy Health Coverage or Pay the Penalty Whether to Buy Health Coverage or Pay the Penalty By Eddie Adkins and Lynn Ettinger Deciding whether to pay for health insurance or forgo it and pay a penalty is easy for many people. They think, Without

More information

Health Care Reform Implications for Employers with Seasonal Employees

Health Care Reform Implications for Employers with Seasonal Employees Health Care Reform Implications for Employers with Seasonal Employees Many industries (e.g. ski resorts, retail, restaurants, agriculture, fishing and tourism) have a significant number of seasonal employees.

More information

Health Reform in a Nutshell: What Small Businesses Need to Know Now.

Health Reform in a Nutshell: What Small Businesses Need to Know Now. Health Reform in a Nutshell: What Small Businesses Need to Know Now. With the passage of the most significant reform of America s modern-day health care system, many small business owners and human resources

More information

Health Care Reform Management Alert Series Roadmap of Plan Changes Needed For Upcoming Plan Years

Health Care Reform Management Alert Series Roadmap of Plan Changes Needed For Upcoming Plan Years Health Care Reform Management Alert Series Roadmap of Plan Changes Needed For Upcoming Plan Years Seyfarth Shaw has generously given permission to Lawyers Alliance for New York to circulate this chart

More information

business owner issues and depreciation deductions

business owner issues and depreciation deductions business owner issues and depreciation deductions Individuals who are owners of a business, whether as sole proprietors or through a partnership, limited liability company or S corporation, have specific

More information

THE AFFORDABLE CARE ACT IN ACTION

THE AFFORDABLE CARE ACT IN ACTION THE AFFORDABLE CARE ACT IN ACTION How Health Insurance Reform Could Affect You The Impact of the Individual Mandate Health Insurance Marketplace Exchanges Provisions Affecting Individuals and Businesses

More information

Health savings account Q&As

Health savings account Q&As Health savings account Q&As What are HSAs and who can have them? 1. What is a Health Savings Account (HSA) and how does it work? An HSA is a tax-advantaged account established to pay for qualified medical

More information

Health care reform at-a-glance. December 2013

Health care reform at-a-glance. December 2013 December 2013 Employer mandate Play or pay penalty for failing to offer coverage to at least 95% of all full-time employees (FTE) and children if any FTE gets subsidy in exchange $2,000 (indexed) times

More information

Evaluating and Comparing Health Coverage

Evaluating and Comparing Health Coverage Heritage Trust Retirement and Investment Dennis Bailey Financial Advisor 200 Marymeade Drive 843-832-7529 dbailey@moneyconcepts.com Evaluating and Comparing Health Coverage Page 1 of 7, see disclaimer

More information

I don t have health insurance, can I get an HSA? Unfortunately, you cannot establish and contribute to an HSA unless you have coverage under a HDHP.

I don t have health insurance, can I get an HSA? Unfortunately, you cannot establish and contribute to an HSA unless you have coverage under a HDHP. FREQUENTLY ASKED QUESTIONS (Information obtained from US Treasury HSA website) HSA Basics What is a Health Savings Account ( HSA )? A Health Savings Account is an alternative to traditional health insurance;

More information

Health care reform is once again

Health care reform is once again Marjorie M. Glover and Rachel M. Kurth Employee Benefit Plan Review Reprinted from April 2010 Health Care Reform: How It May Impact Employers, Employees, and Benefit Plans Health care reform is once again

More information

Instructions for Form 8889

Instructions for Form 8889 2014 Instructions for Form 8889 Health Savings Accounts (HSAs) Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise noted. Future Developments

More information

Note: Special rules apply to certain reservists and national guardsmen called to active duty after September 11, 2001.

Note: Special rules apply to certain reservists and national guardsmen called to active duty after September 11, 2001. Alan Bolotin Baystate Financial Services 301 Edgewater Place Suite 200 Wakefield, MA 01880 781-876-4101 abolotin@baystatefinancial.com www.abolotin.com Understanding IRAs Page 1 of 5, see disclaimer on

More information

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT and THE RECONCILIATION ACT

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT and THE RECONCILIATION ACT THE PATIENT PROTECTION AND AFFORDABLE CARE ACT and THE RECONCILIATION ACT On Sunday, March 21 st, the U. S. House of Representatives passed the Patient Protection and Affordable Care Act (H. R. 3590) by

More information

Federal Tax and Capital Gains: Rates Over Time

Federal Tax and Capital Gains: Rates Over Time Preparing for a World of Higher Taxes Are You Ready? Presented by: Matt Sommer, CFP, CPWA, AIF Director and Senior Retirement Specialist, Retirement Strategy Group C-0610-114 4-30-11 Federal Tax and Capital

More information

Individual Shared Responsibility Provision What You Need to Know

Individual Shared Responsibility Provision What You Need to Know Individual Shared Responsibility Provision What You Need to Know Virtual Town Hall The information contained in this presentation is current as of 5/28/2014. For the latest information about tax provisions

More information

Health-Related Revenue Provisions in the Patient Protection and Affordable Care Act (P.L. 111-148)

Health-Related Revenue Provisions in the Patient Protection and Affordable Care Act (P.L. 111-148) Health-Related Revenue Provisions in the Patient Protection and Affordable Care Act (P.L. 111-148) Janemarie Mulvey Specialist in Aging Policy April 8, 2010 Congressional Research Service CRS Report for

More information

A Digital Insurance Health Care Reform Handbook for Employers

A Digital Insurance Health Care Reform Handbook for Employers A Digital Insurance Health Care Reform Handbook for Employers Health care reform is complicated. Sifting through all the regulations and provisions can be time-consuming and confusing. That s why Digital

More information

2015 Health Savings Account (HSA) Frequently Asked Questions. Table of Contents

2015 Health Savings Account (HSA) Frequently Asked Questions. Table of Contents 2015 Health Savings Account (HSA) Frequently Asked Questions Table of Contents Health Savings Account (HSA) Plans What is a Health Savings Account (HSA)?...pg. 1 How does an IU Health HSA work?...pg. 1

More information

Presented by Scott Day State Treasurer of the Kansas Association of Health Underwriters

Presented by Scott Day State Treasurer of the Kansas Association of Health Underwriters Reform Provisions and their effective dates Outline of Health Insurance Reforms that Will Impact Private Health Insurance Coverage under H.R. 3590, the Patient Protection and Affordable Care Act and H.R.

More information