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Alpha e-News Update
November 2010 |
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The Alpha Group Agency
4200 Rockside Road, Suite 300
Independence, Ohio 44131
216-520-3300 |
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| Guideline Changes for Over-the-Counter Medicines
With the passage of the Patient Protection and Affordable Care Act came important and immediate changes to the eligibility of over-the-counter (OTC) medicines for reimbursement under Health Reimbursement Arrangements (HRAs), Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs).
Regardless of a plan's effective date or renewal date, as of January 1, 2011 OTC medicines are only eligible for reimbursement using funds from these tax-favored accounts if accompanied by a prescription from a physician. Other OTC items such as bandaids, contact solutions, etc remain reimbursable and are not affected by this new legislation. It is also important to note that OTC medications affected by this change will no longer be eligible for purchase beginning January 1, 2011 using your plans debit card due to the new documentation requirements put in place and enforced by the IRS's automated software approval system.
Please see the attached notice which discusses this change in greater detail. |
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From The Wellness Department 
Maintain Don't Gain! What's Your Plan? Holiday parties are on the horizon so before you head out to your next seasonal gathering (or anytime food might be a temptation), formulate a plan!
Don't sit at the dinner table after the meal is over if there is still food on the table. Inevitably you will snack on the food at the table even if you aren't hungry. I sat at the table long after the Thanksgiving meal last year and ate a dessert I didn't even like because I stared at it for 2 hours and convinced myself it would taste good-it didn't. I ate it anyway and consumed more calories than I indented.
Think about the foods that may be available at the dinner or party. If they are foods you have a hard time saying no to, plan ahead how you will face the temptation when (not if) it happens. Convince yourself you will not give into that pumpkin pie. When you see it, drink some water, walk away and engage yourself in some other activity such as talking to a friend or playing a game- just move away from the temptation. If you HAVE to have it, have a bite of it to satisfy yourself and throw the rest away.
Fill your plate (and your tummy) with fresh fruits and vegetables. Fill up on good for you food first and leave a little room for the not so healthy foods. I'm not saying don't eat the not so healthy foods, just think "moderation!"
The reality is that most of us will indulge in at least one or two not so good for us foods. If you do indulge, indulge on foods that are not commonplace to you. Don't fill up on potato chips and cookies you can have anytime of the year. Make your choices count. Have a taste of Aunt Martha's custard pie that you love and only get once a year. And don't eat the whole pie! Have enough to satisfy and then throw it away or share a small piece with someone else!
November Wellness Issue |
Ignoring the IRS is Never a Good Thing!
Your 401(k) Plan May Be Selected for a "Compliance Check"
 The Employee Plans Compliance Unit (EPCU) of the Internal Revenue Service is conducting a "compliance check" of 1,200 randomly selected 401(k) retirement plans as part of its ongoing efforts to increase voluntary compliance with the tax rules for 401(k) retirement plans. The IRS is using this opportunity to look into 401(k) plans and determine: (1) potential compliance issues, (2) any plan operational issues, and (3) additional education and outreach guidance that may be helpful for the IRS to provide to plan sponsors to improve compliance. Although the compliance check questionnaire is neither an audit nor an investigation, you are required to respond to the IRS' questions about the company's 401(k) retirement plan. Failure to respond or to provide complete information, however, will result in further action which could include a full examination (audit) of your plan. The 401(k) compliance check questionnaire is to be completed within 90 days from the date you receive a letter identifying you as one of the randomly selected plans. The IRS prefers that you complete the questionnaire online. You are absolutely allowed to have someone else complete the questionnaire and to represent the plan during this compliance check. Kenneth M. Haneline, Esq. Kastner, Westman & Wilkins, LLC khaneline@kwwlaborlaw.com |
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New Guidance Provides Relief on W-2 Reporting and Information on Child-Only Policies

The Obama Administration issued two new pieces of important guidance this week on PPACA provisions-IRS guidance on making the employer health insurance premium cost reporting requirements on W-2 forms optional for the 2011 tax year, and a letter from DHHS Secretary Kathleen Sebelius to the NAIC on how child-only health insurance policies may be issued. The National Association of Health Underwriters (NAHU) is hopeful that these two recent actions signal a trend that the administration will be reasonable with regard to enforcement and implementation of PPACA provisions.
With regard to the W-2 issue, the IRS issued Notice 2010-69, which makes the reporting optional for 2011 Forms W-2, and indicated that guidance is coming later this year on what should be reported. Also, the IRS released the draft 2011 Form W-2 that indicates that the health care cost can be reported in existing Box 12, using new code "DD," and makes it clear that this amount is not taxable income to employees.
Continuing reading..
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Desk Stretch: Seated Hip Opener
While sitting with feet flat on the floor, cross right leg over left with right leg flat on top of left and hands on top of left leg. Slowly lean forward until a stretch is felt in the hip. Hold for 20-30 seconds. Replace left leg on the floor and repeat with the right leg. |
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The Alpha Group Agency
Alpha Benefits, Inc. / Alpha Financial Services, Inc. / Alpha Property & Casualty, Inc. / AlphaHR, LLC.
Your partner for stability, security & growth. |
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