BENEFIT PLANS
The COBRA health coverage subsidy will affect health care plans in 2010:
Firms must let subsidy recipients take part in open enrollment for next year if their subsidy period continues into 2010. Since terminated workers are eligible for a nine month subsidy period,
this can affect former employees who were let go after March 2009. IRS says if premiums for these ex-workers go up due to a change in their benefit plan, they don’t lose the subsidy. That’s
good news for individuals who choose to add dental or vision care or switch from an HMO to pricier coverage. Cash balance plans get a reprieve on a new rule for calculating benefits, IRS says.
They now get an extra year, until the end of 2010, to ensure that the rate used to figure earnings on participants’ accounts does not exceed a market rate of return. The Service needs more time to determine how to compute the rate. IRS won’t grant further delays on reporting stock transfers involving ISOs... incentive stock options. Under newly issued regulations, firms needn’t report to
IRS about ISOs exercised during 2009. But reports must be filed for options exercised in 2010. Ditto for employee stock purchase plans. Firms already must report data on ISOs, such as their grant date, exercise price and the like, to their employees.
The COBRA health coverage subsidy will affect health care plans in 2010:
Firms must let subsidy recipients take part in open enrollment for next year if their subsidy period continues into 2010. Since terminated workers are eligible for a nine month subsidy period,
this can affect former employees who were let go after March 2009. IRS says if premiums for these ex-workers go up due to a change in their benefit plan, they don’t lose the subsidy. That’s
good news for individuals who choose to add dental or vision care or switch from an HMO to pricier coverage. Cash balance plans get a reprieve on a new rule for calculating benefits, IRS says.
They now get an extra year, until the end of 2010, to ensure that the rate used to figure earnings on participants’ accounts does not exceed a market rate of return. The Service needs more time to determine how to compute the rate. IRS won’t grant further delays on reporting stock transfers involving ISOs... incentive stock options. Under newly issued regulations, firms needn’t report to
IRS about ISOs exercised during 2009. But reports must be filed for options exercised in 2010. Ditto for employee stock purchase plans. Firms already must report data on ISOs, such as their grant date, exercise price and the like, to their employees.
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