The Classic Double-Dip
Who doesn’t like to splurge on a little extra ice cream in the summer? Actually, this article doesn’t have anything to do with a tasty treat; rather, it speaks to the stomach-turning attempts to circumvent current tax law in regard to pre-tax benefits. We’ve all seen and heard about the so-called “wellness” plans or self-insured, fixed-indemnity health plans that reimburse employees for all or a portion of the amount contributed via pre-tax salary reduction. Despite several attempts by the IRS to squelch these types of plans, there are folks out there who work just as hard to find a way around the rules. The most recent IRS memorandum on this topic can be found via the following link: https://www.irs.gov/pub/irs-wd/201703013.pdf. There is a reason why the old adage “if it looks too good to be true, it probably is” is still around.