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As employee benefits programs increase in sophistication and flexibility, the complexity of tax compliance often increases as well. RSM understands the tax ramifications of employee benefits plans and regularly shares updates on tax concerns and compliance issues related to these plans. See below for some of our most recent IRS updates.
The IRS has published final section 6050Y regulations requiring reporting of sales and acquisitions of certain life insurance contracts.
Favorable rule for corporate stock acquisitions where life insurance contracts are less than 50 percent of the target corporation’s assets.
The IRS issues proposed regulations to update the life expectancy tables to reflect current, longer life expectancy rates.
The federal government will expand health reimbursement arrangement (HRA) with two new options starting in 2020.
The IRS publishes applicable annual limitations and maximums for retirement plans, resulting in small increases for 2020.
Qualified small employer health reimbursement arrangements allow small employers to pay employee medical expenses on a tax-free basis.
All companies seeking QI, WP, or WT status for 2019 must apply by Nov. 15, 2019 to have an agreement in effect.