Wed, July 21, 2010
IRS Ruling Makes Employer-Provided Health Coverage Available to Children Under 27
About a year ago I noted that a hodgepodge of state laws enabled some parents to keep their post-college-age children covered under an employer-sponsored health plan. This spring the IRS issued new guidelines under the Affordable Care Act allowing employers to provide coverage for children under the age of 27 as a tax-free employee benefit.
The new rule, which went into effect March 30, applies not only to employer-sponsored health plans, but also FSAs (flexible spending arrangements), health reimbursement arrangements, voluntary employees’ beneficiary associations, and the above-the-line deduction given to self-employed individuals for health insurance costs.
Under the new guidelines, a child no longer needs to qualify as a dependent for tax purposes. Further information on the details of the health coverage expansion are available at the IRS Web Site.
RELATED POST:
Continuing Health Insurance After Graduation