Monday, February 23, 2015
The IRS begins to address the Cadillac tax
The Affordable Care Act imposes a 40% excise tax on the cost of employer sponsored health coverage, including our beloved FEHBP, over certain dollar thresholds. The tax is scheduled to take effect in 2018. Like most ACA provisions this high cost plan excise tax a/k/a the Cadillac plan tax is a riddle inside an enigma. Today the IRS released 24 pages of preliminary guidance on the Cadillac tax. The IRS is accepting public comment on this release and the Cadillac tax until May 15, 2015.