Pension & Benefits NetNews – April 9, 2019

 

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Featured This Week

 

Employee Benefits Management News

 

  • Opportunity exists to improve consumers’ limited health plan knowledge, survey finds
  • 2020 actuarial calculator goes deep into the data
  • DOJ urges Fifth Circuit to affirm case repealing the ACA
  • Court strikes down key provisions of DOL’s AHP rule

Pension Plan Guide News

 

  • IRS reminds taxpayers to make contributions to IRAs by April 15, 2019 to claim them on 2018 tax returns
  • IRS provides additional relief for certain taxpayers’ 2018 withholding and estimated tax penalty waiver
  • IRS issues covered compensation tables for 2019

 

Employee Benefits Management News

 

Opportunity exists to improve consumers’ limited health plan knowledge, survey finds

The average consumer remains highly engaged in their health and wealth, according to the annual HSA Bank Health & Wealth Index(SM) for 2019. The report explores how consumers are faring when it comes to their financial and physical health. For more information, see ¶2123T

        (Read Cheetah) »

2020 actuarial calculator goes deep into the data

The Centers for Medicare and Medicaid Services (CMS) has released information on the final 2020 actuarial value (AV) calculator. The AV calculator must be used each year by issuers of non-grandfathered health insurance plans offered in the individual and small group markets (both inside and outside of the affordable insurance exchanges) to determine levels of coverage. For more information, see ¶2123V.

        (Read Cheetah) »

DOJ urges Fifth Circuit to affirm case repealing the ACA

The U.S. Department of Justice (DOJ) has filed a letter with the U.S. Court of Appeals for the Fifth Circuit, urging the court to affirm the decision of a Texas Federal District Court (Texas v. U.S. (N.D. Tex.), No. 4:18-cv-00167-O, December 14, 2018) in which it held that the Patient Protection and Affordable Care Act (ACA) was unconstitutional. For more information see ¶2123W.

        (Read Cheetah) »

Court strikes down key provisions of DOL’s AHP rule

Concluding that the Department of Labor’s 2018 association health plan (AHP) final rule “is clearly an end-run around the ACA” and, moreover, that it “does violence to ERISA,” a federal court in the District of Columbia invalidated two key provisions broadening the meaning of “employer associations” to include small businesses (with or without employees) and self-employed individuals so as to avoid the ACA’s health care market requirements. For more information, see ¶2123X.

        (Read Cheetah) »

Pension Plan Guide News

 

IRS reminds taxpayers to make contributions to IRAs by April 15, 2019 to claim them on 2018 tax returns

The IRS has reminded taxpayers that it is not too late to contribute to an Individual Retirement Arrangement (IRA) and still claim it on a 2018 tax return. Anyone with a traditional IRA may be eligible for a tax credit or deduction on their 2018 tax return if they make contributions by April 15, 2019. Contributions to a traditional IRA are usually tax deductible, and distributions are generally taxable. To count for a 2018 tax return, contributions must be made by April 15, 2019 (April 17, 2019 for residents of Maine and Massachusetts). Taxpayers can file their return claiming a traditional IRA contribution before the contribution is actually made. The contribution must then be made by the April due date of the return. While contributions to a Roth IRA are not tax deductible, qualified distributions are tax-free. In addition, low- and moderate-income taxpayers making these contributions may also qualify for the Saver’s Credit. Generally, eligible taxpayers can contribute up to $5,500 to an IRA for 2018. For someone who was 50 years of age or older at the end of 2018, the limit is increased to $6,500. For 2018, if a taxpayer is covered by a workplace retirement plan, the deduction for contributions to a traditional IRA is generally reduced depending on the taxpayer’s modified adjusted gross income: For more information, see ¶163w.

        (Read Cheetah) »

IRS provides additional relief for certain taxpayers’ 2018 withholding and estimated tax penalty waiver

The IRS has announced expanded penalty relief for certain taxpayers whose 2018 federal income tax withholding and estimated tax payments did not meet the penalty’s usual safe harbor. The IRS is lowering the threshold required to qualify for this relief to 80%. Earlier this year, the IRS had provided penalty relief, setting the threshold at 85%. The usual threshold is 90% to avoid a penalty. The IRS designed this relief to help taxpayers who were unable to adjust their tax payments for the changes made by the Tax Cuts and Jobs Act. While the IRS expects most tax filers to get refunds, some will owe additional tax when they file their returns. For more information, see ¶164a.

        (Read Cheetah) »

IRS issues covered compensation tables for 2019

The IRS has released tables for determining employees’ covered compensation for the year 2019. The tables are used by administrators of pension plans that provide for permitted disparity and, thus, integrate participants’ final pension benefits with their estimated social security benefits. Rounded compensation tables are also provided. For more information, see ¶19948z465.

        (Read Cheetah) »

 

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