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| October 2005 Volume IV, Issue 10 | Editor: Melissa Vinson, CFCI |
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2006 Maximum Social Security TaxThe maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $94,200 in 2006. Upcoming SeminarsDPI 125 Basic Software Training: DPI 125 Advanced / CMS Software:
Global Claims Processing / CMS: DPI-105 HRA Software DPI COBRA Education/Training: myHSAToday™ Training: Click here to view Event Calendar. All seminars will be in Little Rock, AR. DataPath Websitesdpath.com DataPath Web
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DataPath TodayDataPath is rapidly increasing its products, services, staff (50 and counting), and office space at an annual growth rate of 33 percent. As a result, many of our users do not realize all that DataPath offers today. Here's a capsule view of today's DataPath to bring you up to date. DataPath Administration Systems / Modules:
DataPath Services:
Click here to read more about our company and its services and goals. 2006 Pension and Benefit Plan LimitsIRS released the new 2006 indexed contribution and benefit limits for qualified plans on October 14, 2005. For most of the limitations, the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. Also, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) had scheduled several limitations to increase at the beginning of 2006. Click
here to read a list of the increases. Tax-Favored Treatment for Katrina VictimsIRS has announced recent changes in the tax law that provide tax-favored treatment for Hurricane Katrina victims who have funds in certain retirement plans. The new law provides for tax-favored withdrawals, recontributions, and loans. IRS will be releasing further guidance soon on this. They are also drafting Form 8915, Qualified Hurricane Katrina Retirement Plan Distributions and Repayments, which taxpayers will use to report distributions and determine the amount included in income. Click
here to read the highlights. Additional Time Frame Extensions for Katrina VictimsIn September, IRS and DOL announced the extension of certain time frames that would otherwise apply under the COBRA and HIPAA portability provisions of ERISA and the Code, and under the ERISA claims procedure requirements. (Click here to read the News Release.) For participants, beneficiaries, and plans in the disaster areas, certain time frames for COBRA, HIPAA, Benefit Claim Procedure Rules were extended for the period between August 29, 2005 and January 3, 2006. The effect was to freeze the application of the time periods through January 3, 2006. The DOL and IRS have now extended the end of the period to February 28, 2006, thus adding approximately two additional months to the time frame extensions. To sum it up, the period from August 29, 2005 through February 28, 2006 must be disregarded when determining time frames. Click here to view the specific time frames. DOL: Informal Views on ERISA IssuesOn May 18, 2005, the American Bar Association's Joint Committee on Employee Benefits held its annual Q&A session with DOL officials which addressed claims procedures, MEWAs, transferring assets to TPAs, and other ERISA issues. Click here to read a report of DOL's informal views. EEOC Posts Q&As on
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LEGAL DISCLAIMER:
Material contained in this newsletter is not legal advice, and should
not be construed as legal advice. If you need legal advice upon which
you can rely, you must seek a legal opinion from your attorney. |