Employers Reimbursing Employees for Individual Coverage

Recently, the IRS issued guidance which places harsh penalties on employers that deploy the strategy of "dumping" employees into the Individual health insurance marketplace.  The guidance followed the White House's objection to the idea of allowing employers the ability to provide employees with a lump sum of money with which to buy individual insurance on the exchange/marketplace.  This builds on guidance released last year from the Department of Labor (DOL) which was more broad in scope.  A previous blog post addressed the DOL guidance, which effectively "killed" the ability to use tax preferred funds from HRAs and FSAs to fund Individual health insurance premiums, regardless of the source of such coverage.
The recent ruling and associated guidance is short and sweet.  Here's the scoop...

To access the complete article, click - https://smstevensandassociates.com/ResourceLibrary/tabid/192/Default.aspx