12-22-10 Tax Free Employer Provided Health Coverage for Older Children

Tax Free Employer Provided Health Coverage for Older Children

As a result of changes made by the Affordable Care Act, health coverage provided for employee’s children under the age of 27 can now be tax-free to the employee. This new age limit replaces the lower age limit that was previously in place. These changes will allow employers with cafeteria plans to permit employees to make pre-tax contributions.
Employees who have children, and who will not reach age 27 by the end of the year, are eligible for the new tax benefit from March 30, 2010, forward. This includes children who are already covered under the employer’s plan, or are added to the plan at any time. Qualifying children include:

• Son

• Daughter

• Stepchild

• Adopted child

• Eligible foster child

If you have any questions about this, please let us know.
 
 
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