Sterling Proud to Announce Donations to Food Banks

Sterling Administration is proud to announce that in the spirit of wellness and giving, we have made donations to the following food banks, located in the regions we serve.

To learn more, read our press release.

Sterling CEO Cora Tellez Panelist in BNY Mellon Women-Grown Business Symposium

Sterling Administration is pleased to announce that CEO, Cora Tellez was a featured panelist for the BNY Mellon Women-Grown Business Symposium in La Jolla, California on October 22, 2015.

At the event, Cora was asked to discuss challenges she has faced and successes she has achieved through out the lifecycle of her businesses.

The BNY Mellon Women-Grown Symposium is part of the Sheppard Mullin Advisor of the Year Program, which recognizes professional advisors.

New IRS 2016 Cost of Living Adjustments for Health FSA and Transportation Benefits

Hot off the press, the IRS just released 2016 Cost of Living Adjustments for Health FSAs and Transportation benefits. For 2016, Health FSA limits remain at $2,550. For 2016, parking will be $255 (a $5 increase). Transit passes and vanpooling remains at $130.

Need help or expert advice? Contact your sales representative at Sterling.

The Cadillac Tax, HSAs and What You Need to Know

In 2018, the Patient Protection and Affordable Care Act’s “Cadillac tax” provision kicks in, imposing a 40% tax on the cost of employer-sponsored health coverage exceeding statutory thresholds. The coverage cost threshold for 2018 is $10,200 per employee for self-only coverage. For other than self-only coverage, the threshold is $27,500 per employee.

What Does This Have to Do With HSAs?
As it stands today, according to IRS Notice 2015-16, plan employer and employee pre-tax HSA contributions are included in calculating “applicable coverage”, or the taxable health plan costs under the PPACA. For the past several years, the pairing of HSAs with high-deductible health plans has been a successful model for highly-compensated individuals to reduce their income tax burden.

Game Changer
According to the Kaiser Family Foundation, “while the Cadillac tax is often described as a tax on generous health plans, it actually is calculated with respect to each employee based on the combination of health benefits received by that employee, and can be different for different employees at the same employer, and even for different employees enrolled in the same health insurance plan.” While we know a lot, there are still some details to be worked out. For now, we know that the applicable coverage calculation for each employee generally will include (among other factors):
• The average cost for the health insurance plan;
• Employer contributions to an HSA; and
• Employee or employer contributions to an FSA.

Looking Ahead to 2018
It is critical for employers and brokers to partner with expert advisers, so they can make educated, informed decisions on what, if any, adjustments should be made to their health plan benefits to keep plan costs below the applicable thresholds. Sterling Administration will continue to share important information on this topic with our community as we get closer to 2018. There is talk in Washington, D.C. of the IRS making further adjustments to Cadillac tax administration, based on the agency’s request for comments in Notice 15-52; Sterling will continue to stay on top of the developments.