As a country, we are rapidly adapting to the global pandemic of COVID-19. Foster & Foster is monitoring the situation to understand how the virus will impact our clients’ benefit plans. We would like to share this update, which contains our policies and recommendations as of Friday, March 13, 2020. We will follow developments and update you as things change. … Read More
State Individual Mandates Add to Employer Reporting Responsibilities
In response to the federal government’s repeal of the financial penalties of the Affordable Care Act’s (ACA’s) Individual Mandate, several states have enacted their own individual mandates. Without the federal penalty in place, many states feared that there would be a exodus of healthy individuals from the plans offered in their respective healthcare marketplaces. In order to avoid market destabilization, … Read More
Year-end Congressional Spending Bill Repeals ACA Taxes and Extends PCORI Fee
As part of a year-end spending bill that was signed in law last Friday, Congress passed a repeal of several ACA taxes, an extension of the PCORI fee, and a number of revisions to retirement savings plans. Foster & Foster outlined changes to employer-sponsored and individual retirement accounts here. Below, we highlight several changes relevant to health plans: Permanent repeal … Read More
SECURE Act Signed into Law
Last week saw the U.S. Senate pass an omnibus spending bill, which President Trump signed into law on Friday. Attached to this bill was the Setting Every Community Up for Retirement Enhancement Act (SECURE Act), which would make changes to both employer-sponsored retirement plans and individual retirement accounts, most notably: Expand the ability of employers to partner together to offer … Read More
IRS Announces Updates to 2020 Retirement Plan Limits
Each year the IRS provides cost of living adjustments to benefit plan limits to assist sponsors in administering their plans. On November 6, the IRS released Notice 2019-59, which provided 2020 limits for retirement plans. Information on the release can be found here. Some of the key limits are shown below, along with the increase in the Social Security taxable … Read More
Foster & Foster Expands Plan Administration Services to Illinois Fire and Police Pension Funds
Foster & Foster’s Plan Administration Division was established in Fort Myers, FL in 2013 and currently provides third-party administration services to over 40 Florida pension plans. The administrative responsibilities vary based on client needs, but may include services such as: Administration of Meetings – Prepare Meeting Agendas, Packets and Minutes Facilitation of Trustee Elections and Annual Affidavits Certifying Pension Eligibility … Read More
IRS Announces 2020 Flexible Spending Arrangement (FSA) Contribution Limit
The Internal Revenue Service (IRS) has announced that the 2020 limit on employee pre-tax FSA contributions will rise to $2,750, up from $2,700 in 2019. Revenue Procedure Bulletin 2019-44 provides the details of this and approximately sixty other tax-related annual inflation adjustments. The dependent care FSA maximum, which is set by statute and not subject to inflation-related adjustments, will remain … Read More
Overview of Selected HSA Banking Alternatives
We’re frequently asked which is “the best” HSA bank for our clients’ employees, but it’s not an easy answer. Lately, employers are moving away from using traditional banks and toward online or investment banks to take advantage of longer term investment options and online fund access. Increasingly, employers are even pairing their HSA with their retirement savings vendor to help … Read More
SOA Mortality Tables Finalized for Private-Sector Retirement Plans
In May 2019, the Society of Actuaries (SOA) released an exposure draft of the Pri-2012 Mortality Tables for private-sector retirement plans. These new tables were based on data collected for 2010 – 2014, with a central year of 2012. The Pri-2012 tables update the RP-2006 tables (the mortality table basis for the RP-2014 Mortality Tables that are currently in use). … Read More