Here is your latest FYI: Employee Benefits
Update from Cindy Van Bogaert, Partner and Chair of the Employee
Benefits Practice Group at Boardman Law Firm LLP.
This FYI provides information about a recent IRS Revenue Ruling
dealing with Health Reimbursement Arrangements ("HRAs").
HRAs can be a valuable tool for employers to provide employees
with reimbursement for qualifying health expenses. The employer
typically sets a fixed dollar limit for such expenses which allows
cost-containment for the employer. As with most useful employee
benefits, fairly complex limitations apply.
The new IRS Revenue Ruling addresses one of the general requirements
that limits an HRA from providing benefits to a designated beneficiary
other than the employee's spouse or dependents.
The new Revenue Ruling can be found at:
http://www.irs.gov/pub/irs-drop/rr-06-36.pdf
Employers should note that HRAs generally are subject to plan
and summary plan description requirements of ERISA that apply to
health plans as well as to the IRS requirements for tax purposes.
If you have any questions or need assistance, please contact Cindy
Van Bogaert at (608) 281-7543 or cvanbog@boardmanlawfirm.com.
Would you like to have FYI: Employee Benefits Update sent
directly to your e-mail inbox? If so, please send your request,
with e-mail address, to Cindy Van Bogaert at cvanbog@boardmanlawfirm.com.
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