#health-insurance
Track health insurance costs and employee benefits
IRS Section 2503(e) excludes direct tuition and medical payments from gift tax entirely — no cap, no Form 709, and room and board don't qualify.
Paying workers' individual health premiums creates an illegal group health plan — penalized at $100/day per employee under IRS Section 4980D.
The IRS allows one tax-free IRA-to-HSA transfer per lifetime, capped at the HSA limit — fail the 12-month test and it is taxable income plus 10%.
An HSA excess pulled with its earnings by April 15 (October 15 on extension) owes no 6% IRS penalty — just income tax on the earnings.
US termination checklist: meet your state's final-pay deadline, send COBRA notices within 44 days, get OWBPA releases right and collect property same day.
IRS rules let your health FSA carry over $680 or offer a 2.5-month grace period — never both. The run-out deadline decides what you actually keep.
IRS Letter 12C is a processing hold, not an audit — fax or mail the requested forms within 20 days and skip Form 1040-X; refunds follow in 6–8 weeks.
Covered by an HDHP on Dec. 1? The IRS last-month rule allows a full-year HSA contribution — but fail the 13-month testing period and owe tax plus 10%.
A spouse on W-2 payroll can fund a second solo 401(k) and pretax health coverage — if the IRS sees real work, market pay, and payroll records.
No federal penalty ($0), but CA, MA, NJ, RI, and D.C. still charge $300–$4,908 per person — plus separate state employer filings.
A QSEHRA lets employers under 50 FTEs reimburse individual health premiums tax-free — up to $6,450 self-only in 2026, with the IRS 90-day notice filed.
A one-employee Section 105 HRA lets a sole proprietor deduct the family's medical spend — premiums included — against income and self-employment tax.
