After the Affordable Care Act (Obamacare) became law, a bunch of ads have popped up on the web touting “defined-contribution health plans.” They’re billed as perfect for business owners who have fewer than fifty employees.
The trouble is, the tax code makes no mention of defined-contribution health plans!
FACT: These plans are purely the creation of marketers and can get you in a lot of trouble if you don’t know what you’re doing. I’m talking about penalties of $36,500 per employee per year!
If you want to learn which kind of defined contribution health plans are perfectly legal and which can get you in the soup, read my new article titled Tax Tips: Defined Contribution Health Plans versus the Tax Code.
Three ways our fact-filled article can help you:
- We’ll tell you when group health insurance is a safe bet. If you buy “group health insurance” for your employees, whether through the private exchanges or anywhere else, you won’t have a problem. We’ll give you all the details when you read the full article.
- You’ll learn how to avoid a legal mine field. If you have more than one employee, watch out! Reimbursement for the cost of their health insurance will not be allowed by the IRS. We’ll tell you what to watch out for when you read the full article.
- We’ll explain the IRS’s frightening warning. In May, 2014, the IRS issued guidance stating that the reimbursement of individual policies violates the new law. What’s more, they added a no-nonsense reminder that the penalty for breaking the law amounts to $36,500 per year, per employee! We’ll give you the facts when you read the full article.