Social Security
Taxable Wage Base Increase for 2005
The Social Security Administration (SSA) announced that the Social Security taxable wage base will increase from $87,900 in 2004 to $90,000 in 2005. Click
here to see the SSA news release.
Updated List
of Approved Nonbank Trustees and Custodians for HSAs
The IRS released an updated
list of approved nonbank trustees and custodians for HSAs, Archer MSAs, and
other tax-exempt trusts. Click
here to view Announcement 200472, 2004-41
I.R.B. 650 (Oct. 12, 2004).
Info on Disaster Tax Relief
IRS has a website
providing information on disaster tax relief, including an extension
of the Form 5500 filing deadline. Click
here to go to the website.
Events
DPI-125 Basic
Software Training
DataPath
105-HRA / Defined Contribution Concept Seminars
DataPath-COBRA
Education / Training Seminars
General
Information about DataPath Seminars
Industry
Seminars where DataPath will participate
Trade
Shows where DataPath will participate.
Event
Calendar
Informational
DataPath Websites
dpath.com
myHSAToday.com
hsa223.com
hra105.com
myResourceCard.com
idpas.com
Change0fStatus.com
DataPath Products
DataPath
223-HSA
DataPath
105-HRA
DataPath
125
DataPath
132
DataPath
COBRA
MAX
105
myResourceCard®
DataPath Web Services
my RSC.com
DNS: DataPath
Web Services
E.F.T.S. Electronic
Funds Transfer Service
Contact Info
Email Sales or call
1-800-633-3841
Email
Technical Support
or call 1-501-296-9993
About DataPath
Who
We Are
Our
Mission
Our
Vision for Tomorrow
Let's Build a Relationship!
Our Strengths!
What People are Saying about DataPath
Comments?
Suggestions?
If you have any comments on the articles in this newsletter or suggestions
for future newsletters, please email mvinson@dpath.com. We
welcome your input.
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UPDATE
ON mySourceCard™:
DATAPATH'S DEBIT CARD
Here’s the latest on mySourceCard™— DataPath’s
Debit Card. If you haven’t heard about it, read the Press
Release (July 26, 2004) announcing mySourceCard™and
the article in
our August 2004 newsletter
describing the benefits of mySourceCard™.
DataPath users who are presently licensed for the Credit Card may have
license credits that can be used to offset the initial debit card license
fee. Call Baker Bush (1-800-633-3841, Ext. 204) to see if you qualify.
As you see below, you will have everything you need to offer the Debit
Card to your clients who have a plan year beginning January 1, 2005.
Software Training. Software training will be held
in Little Rock. The training for current Credit Card (myResourceCard®) clients is scheduled
for December 14 (8:30 – 5:00). Training for all others will be
held December 16 (8:30 – 5:00) through December 17 (8:30 – 3:00).
For
more details .
. .
HSA Basics:
Preventive Care Exceptions
IRS has provided exceptions to the HDHP requirements for preventive
care. Code § 223(c)(2)(C) states
that a HDHP that applies either no or a low deductible for preventive
care coverage does not fail to qualify as an eligible HDHP (if otherwise
eligible).
IRS
Notice 2004-23 (March 30, 2004) defines the preventive
care that
qualifies
under this exception. Under this notice, the acceptable preventive
care includes, but is not limited to, the following:
- Periodic health evaluations, including tests and diagnostic procedures
ordered in
connection with routine examinations, such as annual physicals.
- Routine prenatal and well-child care.
- Child and adult immunizations.
- Tobacco cessation programs.
- Obesity weight- loss programs.
- Screening services (A list of the acceptable screening services are
listed in the IRS
Notice 2004-23 Appendix).
To
see more . . .
Key Employee and HCE Thresholds Increased for 2005
The October 20, 2004, IR-2004-127 released
by IRS (announcing cost of living adjustments applicable to dollar limitations
for pension
plans and other
items for Tax Year 2005) included the following:.
Highly Compensated Employee. The threshold for
determining who is a "highly compensated employee" under Code Section
414(q)(1)(B) is increased from $90,000 to $95,000.
Key Employee. The threshold for determining who
is a "key employee" in a
top-heavy plan under Code Section 416(i)(1)(A)(i) is increased from
$130,000 to $135,000.
Click
here to view the complete list of 2005 cost of living adjustments
applicable to dollar limitations for pension
plans and other
included items.
Coming Attractions!
Introducing a continuing article, "Coming Attractions",
which will feature an upcoming enhancement to one of DataPath's systems.
This month, "Coming Attractions" will look at the enhanced payment
register for Datapath's COBRA administration system. This enhancement
will be available with the coming DataPath COBRA update.
As
always, employers request many variations to standard procedures. This
enhancement is being added to enable our users to meet employer requests.
With this enhancement, Plan Service Providers (PSPs) can offer the following
new payment options per benefit:
- Send premiums directly to carrier.
- Pay the current month's premium even if the premium has not been received
from the participant.
- Pay future months' premiums.
- Pay for partial month's premiums.
In addition to the above, the PSP will have the ability to cut checks
to participants to reimburse premiums.
To
see more . . .
Significant Changes Resulting from 2004 Tax Act
Among the changes created by the Working Families Tax Relief Act of 2004
(WFTRA), Pub. L. No. 108-311 (Oct 4, 2004) were:
Uniform Definition of Qualifying Child. WFTRA
adopted a uniform definition of "qualifying child" for purposes
of the dependency exemption, the Child Tax Credit, the Earned Income
Credit, the
Dependent Care Tax Credit, and head of household filing status for
taxable years beginning after December 31, 2004.
For
other changes .
. .
New DataPath 125 Manual
Available for Download
The DataPath 125 Manual has
been updated for software versions 3.1.020 or higher. If you are
licensed for Versions 3.1.020 or higher, you can download the manual
by logging in on the support
page of www.dpath.com and going to Downloads. You will find instructions
for downloading the Manual there.
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