New MSA and health insurance rules create opportunities
Article Abstract:
Provisions of the Health Insurance Portability and Accountability Act of 1996 introduce the concept of medical savings accounts (MSAs) and encourage the portability, access and renewability of health insurance. MSAs allow taxpayers to shoulder the expenses related to unreimbursed health care costs while fostering competition for health care services. Employee contributions to MSAs can be deducted from adjusted gross income while employer contributions can be excluded from income. In terms of taxation, MSAs are better than medical expense itemized deduction, flexible spending accounts and IRAs. Meanwhile, group health insurance are aimed at enhancing the portability, access and renewability of group health programs, thereby enabling employees to switch jobs without losing basic health care coverage and to avail of health insurance previously inaccessible to them due to health conditions.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Proposed minimum participation Regulations contain some flexibility as well as harshness
Article Abstract:
Proposed minimum participation Regulations concerning Section 401(a)(26) provide separate rules for the treatment of defined contribution and defined benefit plans. The Proposed Regulations provide: definitions of plans and benefit structures; rules governing eligibility; regulations applying to special terminations; and rules covering retroactive corrections. Some of the specifics of the Proposed Regulations include: allowing the restructuring of benefit structures for tests; allowing exceptions for certain structures covering at least 20 employees; allowing retroactive correction of certain violations; and allowing frozen defined contribution plans to be in compliance with Section 401(a)(26).
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1989
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Method change gives depreciation catch-up. Proposed regulations lessen confusion as to calculation of ACE adjustment
- Abstracts: Strategy, organization and control: some possibilities for accounting research
- Abstracts: Guidelines for protecting the tax practitioner from criminal liability. part 2 Boot given a shareholder in a merger will now generally be taxed as a capital gain
- Abstracts: The influence of voice and explanation on performance in a participative budgeting setting. Is accounting a global or a local discipline? Evidence from major research journals
- Abstracts: Although prop. regs. add clarifications, golden parachutes can still lose their luster