Madison, WI (PRWEB) March 10, 2014
Health Reimbursement Arrangements (HRAs) are a popular way for small business owners to save thousands of dollars each year on their taxes. The good news is that contrary to popular belief, many categories of HRAs will not change under the Patient Protection and Affordable Care Act (PPACA).
Based on Section 105 of the Internal Revenue Code, HRA benefit programs allow small business owners to deduct 100% of family out-of-pocket medical expenses as business tax deductions. This includes insurance premiums for health, long-term care, vision, and dental. The savings can be substantial: On average, families are able to save $5,000 a year on their taxes with a Section 105 HRA.
IRS Notice 2013-54 has caused a great deal of confusion and misinformation in the marketplace, even among industry experts. In fact, Section 105 itself was not amended by the PPACA. Rather, the new ACA “market reform” provisions impose a penalty on some categories of HRAs. But the following Section 105 HRA plan designs are not affected by these “market reforms” and are still permitted as a pre-tax benefit:
According to Andy Biebl, a well-known agricultural tax authority, CPA, and principal with CliftonLarsonAllen LLP, “These HRAs (listed above) remain legitimate, logical and suitable methods of tax avoidance. I personally have recommended HRA plans to small business owners who qualify.”
If you find this all a bit confusing, contact a national third-party benefits administrator or a tax professional who specializes in small business taxes and changing Healthcare Reform legislation.
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About TASC - TASC is an award-winning nationwide third-party benefits administrator of tax-advantaged health benefits plans offering comprehensive services and serving companies ranging in size from one employee to thousands! New product development, innovative tools, and outstanding transparent service keep TASC’s products and services at the forefront of third-party benefits administration.
AgriPlanNOW and BizPlanNOW (Section 105 HRA) are products that fall under TASC’s Microbusiness umbrella. AgriPlanNOW and BizPlanNOW save small business owners an average of $5,000 a year on their out-of-pocket medical expenses!