We would like you to be aware that the IRS has posted new guidelines for FSA Medical reimbursement in Bulletin 2007-50 and have updated the dependent definition in Notice 2008-5.

Important information in IRB 2007-50 includes commentary on Revenue Ruling 2007-71, concerning 2008 covered compensation tables, Ruling 2007-72, regarding diagnostic medical procedures, and Announcement 2007-112, which revises Procedure 2007-65, 2007-45 IRB 967 regarding “Safe Harbor."

Notice 2008-5 clarifies the definition of “dependent” under section 152(d) as well as clarifying the definitions of “qualifying child” and “qualifying relative” under the Code.

We would like to remind you of the IRS mandated Benefit Limit changes for 2008. These limits affecting retirement plan, health plan, and fringe benefit limits will be going into effect on 1/1/08. These limits are spelled out in IRS New Release 2007-171, and Revenue Procedures 2007-36 and 2007-66.

Click here to read News Release 2007-171 about retirement limits.

Click here to read Procedure 2007-36 about health plan limits

Click here to read Procedure 2007-66 about changes to the 2008 tax tables.