Moreton & Company Blog » Human Resources

Health Reform Seminars

Jenn — Wed, 24 Mar 2010 16:17:24 +0000

Moreton & Company will be holding four seminars over two days to discuss how the new legislation will impact your business. These seminars are available to all current and prospective Moreton clients. If you’re interested, click here to send your RSVP to Jenna Schlee.

Federal health reform passes the senate

Sibyl — Wed, 23 Dec 2009 18:14:30 +0000

The Senate voted early Monday morning to end debate on their health reform bill. The Senate will vote on the bill itself just before Christmas, with passage considered very likely. The House passed its own version of reform earlier in the fall. As the next step, a Conference Committee will determine which aspects of each proposal should go into a final bill, to be passed on to the President for signature.

The provisions appearing in both bills are most likely to be included in the final bill after reconciliation, as highlighted in the discussion below. Some aspects of health reform remain “to be determined”— a new federal agency is to be established. The new agency will set standards for the minimum benefit plan an employer must offer, among other issues. The rules set by that agency will affect and alter current employer health plans and their taxation. Employers who do not currently offer plans will be the most affected by reform overall, but all employers will face changes. For example, the agency’s actions may disallow current plan designs in the future, including health savings accounts (HSAs), even though Congressional proposals do not make these programs “illegal.”

Additional analysis is available to Moreton & Company clients on our website. For more information, contact your broker directly or call our main office at 801.531.1234.

IRS Announces 2010 Retirement & Other Benefit Plan Limits

Laura — Tue, 08 Dec 2009 18:26:16 +0000

The Internal Revenue Service recently announced its 2010 adjustments and limits for retirement plans and other benefits. As illustrated below, few limits were changed from 2009. Limits of particular interest to Moreton & Company clients are listed below:

Retirement & Saving Plan Contributions	2009	2010
401(k)/403(b) Contributions	$16,500	$16,500
457(b) Limit	$16,500	$16,500
Catch-up Contributions	$5,500	$5,500
Compensation Limit	$245,000	$245,000
Highly Compensated Employees	$110,000	$110,000
Key Employee Officer Compensation	$160,000	$160,000
Maximum Annual Benefit Defined Benefit Plan	$195,000	$195,000
Maximum Annual Contribution Defined Contribution Plan	$49,000	$49,000
Maximum SIMPLE contribution	$11,500	$11,500
FICA Wage Base	$106,800	$106,800
Personal Income Tax Exemption (income limit on qualifying relative dependent under Code §152)	$3,650	$3,650
ESOP Limits
Dollar limit for determining lengthening of 5-year period	$195,000	$195,000
Dollar amount for determining max. amount subject to 5-year distribution	$985,000	$985,000
219(g)(3)(B)(i) Income Limit for Traditional IRA Deductible Contributions
Taxpayers filing joint return	$89,000	$89,000
For spouse if spouse is not an active participant	$166,000	$167,000
Married taxpayer filing separately	$0	$0
All other taxpayers	$55,000	$56,000
408A(c)(3)(C) Income Limit for Roth IRA Contributions
Taxpayers filing joint return	$166,000	$167,000
Married taxpayers filing separately	$0	$0
All other taxpayers	$105,000	$105,000

Health Savings Accounts (HSA)	2009	2010
High deductible health plan (HDHP) minimum annual deductible
Individual coverage	$1,150	$1,200
Family coverage	$2,300	$2,400
HDHP maximum out-of-pocket limit
Individual coverage	$5,800	$5,950
Family coverage	$11,600	$11,900
HSA monthly contribution–1/12 lesser of annual deductible or statutory limit
Individual coverage	$3,000	$3,050
Family coverage	$5,950	$6,150
Catch-up contributions
Age 55 or older	$1,000	$1,000

Qualified Transportation Fringe Benefits	2009	2010
Monthly limit for transportation in a commuter highway vehicle or transit pass	$120 (increased to $230 by the stimulus bill)	$230
Monthly limit for qualified parking	$230	$230
Monthly limit for bicycle commuters	$20	$20