YEAR END BILL HAS TAX PROVISIONS
Year end bill has tax provisions. The federal government spending bill passed by Congress repeals three health care taxes that were originally enacted as part of 2010 health care reform legislation, makes many changes to retirement plan rules, extends several expired tax provisions, provides disaster relief, and repeals the provision that taxed exempt organizations when they provided parking to their employees. The Further Consolidated Appropriations Act, 2020, H.R. 1865, passed the House of Representatives by a vote of 297-120 and the Senate by a vote of 71-23. The three repealed health care taxes are the Sec. 49801 excise tax on certain high cost employer health plans, popularly called the IRS Cadillac Tax, the Sec. 4191 medical device excise tax, and the annual fee on health insurance providers contained in Section 9010 of the Patient Protection and Affordable Care act. year end bill has tax provisions.
All three taxes had previously been postponed or suspended, most recently by P.L. 115-120. The Sec. 49801 Cadillac tax had been delayed until 2022. The 2.3% medical device excise tax was suspended through Dec. 31, 2019. And the health insurance fee was suspended for 2019. The three taxes, which were enacted to fund the health care reform known as Obamacare, have been repealed. Retirement plan changes The bill also incorporates the text of the Setting Every Community Up for Retirement Enhancement Act of 2019, which passed the House of Representatives in May but was never voted on by the Senate. The bill is designed to encourage retirement savings in various ways and to simplify administrative requirements in order to make it easier for employers to offer retirement plans. The bill introduces many other changes, among them it, increases the age after which required minimum distributions from certain retirement accounts must begin to 72 (from 7 and a half), modifies requirements for multiple employer plans to make it easier for small businesses to offer plans to their employees.
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