News & Links
HSA (Health Savings Account) Limits - 2021
• An individual with coverage under a qualifying high deductible health plan (deductible not less than $1,400) can contribute up to $3,600 — up $50 from 2020 — for the year to their HSA. The maximum out-of-pocket has been capped at $7,000.
• An individual with family coverage under a qualifying high deductible health plan (deductible not less than $2,800) can contribute up to $7,200 — up $100 from 2020 — for the year. The maximum out-of-pocket has been capped at $14,000.
And remember, if you have employees ages 55 or older, they may be eligible to save an additional catch-up contribution of $1,000 per year*.
Summary of limits:
HSA Limits 2021 2020
Individual coverage $3,600 $3,550
Family coverage $7,200 $7,100
Over 55 catch-up
contribution* $1,000 $1,000
IRS Responds to RMD confusion caused by SECURE Act
The following are key highlights from ThinkAdvisor.com regarding the SECURE Act and its effect on RMDs. Please see below for the link for the article in its entirety. Here are some highlights:
Advisors, “should reassure any client who turns 70½ in 2020 that they do NOT have an RMD this year, even though they received a statement from their IRA custodian saying they do. That statement is incorrect — so advisors can tell clients not to worry.”
On the other hand, Slott said, “advisors should also alert clients who turned age 70½ last year (in 2019) to let them know that they do NOT qualify for the age 72 RMD rule, because that new increased RMD age provision only applies to those who turn 70½ in 2020 or later. These clients still do have RMDs, the same as under the old rules. There is lots of confusion here for advisors to deal with.”
“In order to reduce misunderstanding among IRA owners, the IRS encourages all financial institutions, in communicating these RMD changes, to remind IRA owners who attained age 70½ in 2019, and have not yet taken their 2019 RMDs, that they are still required to take those distributions by April 1, 2020.”
The full article is available here: https://www.thinkadvisor.com/2020/01/27/irs-addresses-secure-act-rmd-confusion/
COVID-19 - Health & Prevention
COVID-19 is caused by a coronavirus called SARS-CoV-2. It is spread mainly from person to person, particularly through respiratory droplets produced when an infected person coughs or sneezes. Symptoms can range from mild (or no symptoms) to severe illness. Everyone is at risk of getting COVID-19. Older adults and people of any age who have serious underlying medical conditions may be at higher risk for more severe illness.
Employer News and Resources
Be sure to visit CBIA's website for information for you as an employer.
Reopening CT - May 2020
Employers in search of cleaning supplies, PPE equipment, plexiglass barrier materials, etc. can consult a list compiled by the Connecticut Department of Economic and Community Development. The list includes both in-state and out of state suppliers that have either been vetted by the State or been recommended as reliable by Connecticut businesses.
More information can be found here: https://portal.ct.gov/DECD/Content/Coronavirus-Business-Recovery/Small-Business-Reopening-Resource-Guide