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Monthly Archives: March 2012

IRS Section 125 Premium Only Plan for Non-Profits –No,You Are Not Exempt……

Non-profits enjoy amazing tax treatment and are exempt from many of the laws, rules, and taxation that are required of private business.  However, over the past several years the IRS and D.O.L. have found many 501(c)3 have been extremely out of compliance with things such as retirement plan reporting and tax deductibility of employee withholdings just to name a few.  Based on these findings the IRS changed many rules governing qualified plans in 2009 for plan years starting 2010 in regards to having a written plan document, filing 5500’s with the IRS and many other steps to make sure these non-profits were in compliance.  Although these requirements are specific to 403(b) retirement plans our office has been amazed at the frequency of calls or live chat with executives at non-profits who believe they are exempt from the need to have a written plan document for their employee deductions for health and welfare benefits. [read more...]

March 27th, 2012 • 0 Comments

Cafeteria Plans and How Owners Benefit

The fact is that owners can not participate in the company’s Section 125 Cafeteria Plan. Specifically the following owner/employees are not able to participate in a Section 125 Cafeteria Plan: [read more...]

March 19th, 2012 • 0 Comments

Non-Discrimination Rule Changes in 2012

The non-discrimination rule that applies to some benefit plans will increase its impact once final regulations are released.  The 105(h) rules prohibited employers with self-funded plans from creating a benefit package that shows preference to some individuals over others. The IRS will include fully funded plans in this requirement once the regulatory guidance is released. [read more...]

March 8th, 2012 • 0 Comments

Let the IRS tax code work for YOU!

This is the time of year to close out the books, get ready to file taxes and work with management to determine if there is a better and more effective way to keep more of the money you earn.  The GREAT news is there are a few opportunities still available for small business to have HUGE tax savings on expenses you already have.  Better yet, you can share these savings and increase morale with just a little bit of research.  IRS Section 125 Premium Only Plans have been around for years but like so many other government regulations many of us don’t know about them or just haven’t taken the time to implement one. [read more...]

March 8th, 2012 • 0 Comments

Required D.O.L. updates to your Section 125 Plan –The 2013 limit of $2,500 only applies to FSA account options.

With the passage of Obama’s Patient Protection and Affordability Care Act (PPACA) government compliance with programs such as IRS Section 125 Plans will be a work in progress for years to come.  The most pressing change is based on the 2013 limitation to the out of pocket component of the Section 125 Plan.  Where the core document provided by www.taxfreepremiums.com is the Section 125 Premium Only Plan or POP document there is no update required. [read more...]

March 5th, 2012 • 0 Comments