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Old 11-03-2014, 02:16 PM   #41
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I thought my 2015 HI premiums had dropped when I looked at the new list from OPM. What I didn't know till a week or two later was that the dental coverage was dropped and is available from Kaiser as an add on thus keeping rates about the same as last year.
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Old 11-03-2014, 02:22 PM   #42
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Just received a interesting (?) letter from our company's CPA. The background is that my company has been paying for my health coverage. This coverage is outside of their company's Group Health Plan but there were advantages to both me and the company to continue with the coverage. This will no longer be the case beginning with 2014. The letter reads, in part:

"it has been clarified by the IRS that beginning in 2014, payments made by a company on behalf of or to it's employees for Individual Health Policies are to be considered compensation to employees and not a non-taxable benefit. Payments under a GROUP HEALTH PLAN are still considered a non-taxable benefit and not compensation. It is anticipated that any group health policies for employees will become compensation to them with the next couple of years."

So this is going to be quite a tax "surprise" this year. I was also interested to see the comment that group health polices in general are expected to be counted as taxable compensation in the near future.
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Old 11-03-2014, 02:43 PM   #43
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I was also interested to see the comment that group health polices in general are expected to be counted as taxable compensation in the near future.
I guess the IRS wants to tax anything they can call income anymore, and it looks like traditional employee benefits are just that. I would suspect this action on their part will unfold across many companies.
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Old 11-03-2014, 03:22 PM   #44
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Sounds like equal treatment for all taxpayers to me.
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Old 11-03-2014, 03:28 PM   #45
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I guess the IRS wants to tax anything they can call income anymore, and it looks like traditional employee benefits are just that. I would suspect this action on their part will unfold across many companies.
Why do some people get healthcare tax free and others pay for it with after tax dollars? Doesn't seem fair.
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Old 11-03-2014, 03:34 PM   #46
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[QUOTE][Why do some people get healthcare tax free and others pay for it with after tax dollars? Doesn't seem fair./QUOTE]

Certainly seems like this thinking should apply to Medicare. Just need to figure out the value of benefit and have it subject to federal and state taxes. Could also be subject to FICA, I guess.
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Old 11-03-2014, 03:39 PM   #47
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[QUOTE=misanman;1512233]
Quote:
[Why do some people get healthcare tax free and others pay for it with after tax dollars? Doesn't seem fair./QUOTE]

Certainly seems like this thinking should apply to Medicare. Just need to figure out the value of benefit and have it subject to federal and state taxes. Could also be subject to FICA, I guess.
You mean the employer portion of the premium paid during employment, correct?
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Old 11-03-2014, 04:59 PM   #48
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You mean the employer portion of the premium paid during employment, correct?
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Old 11-03-2014, 08:52 PM   #49
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We just received our Mega Corp Benefit summary for 2015.
Retiree + Spouse <65
Medical $254.20
Dental $11.84
Vision $1.12
All unchanged from 2014
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Old 11-04-2014, 07:53 AM   #50
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Why do some people get healthcare tax free and others pay for it with after tax dollars? Doesn't seem fair.
Some of us do get a partial deduction. Unfortunately it doesn't appear to be inflation adjusted so eventually it won't be worth much. But I'll take it while I can.


"If you’re a retired public safety officer, the federal Pension Protection Act of 2006 (PPA) permits you to exclude up to $3,000 of your qualified health, accident and long-term care insurance premiums from your gross taxable income each year, as long as the premiums are deducted from your retirement benefit."
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