Bill Would Exempt Health Accounts From Tax

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Bill Would Exempt Health Accounts From Tax
Calendar05 April 2016

New legislation introduced in the US House of Representatives would exempt employee contributions to health savings accounts (HSAs) and flexible spending accounts (FSAs) from the ACA’s 40% excise tax on high-cost plans. While employers continue to push for a repeal of the tax, this is welcome news for those that have been considering eliminating health accounts to help mitigate excise tax risk. In comment letters sent to the IRS last May, Mercer and several other employer groups recommended these contributions be excluded from the excise tax calculation. This is definitely a piece of legislation to watch.

Go to full article: businessinsurance.com

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