The White House Provides Affordable Care Act Implementation: IRS Notice on Health Coverage for Adult Children
The Patient Protection and Affordable Care Act provides that health coverage under 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 announced today 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. Please see the press release below, the IRS Notice, and this White House Blog Post for more information (also posted below).
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