In Issue 2010-19 of e-News for Tax Professionals, the Internal Revenue Service made the following announcement:
As a result of changes made by the recently enacted Affordable Care Act, health coverage provided for an employee's children under 27 years of age is now generally tax-free to the employee, effective March 30, 2010. The Internal Revenue Service has announced that these changes immediately allow employers with cafeteria plans -- plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits -- to permit employees to begin making pre-tax contributions to pay for this expanded benefit.
Posted by Joshua Hock, Associate Editor, Wealth Strategies Journal
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