IRS Revises October 2022 Additional Election Change Guidance We recently reported on final IRS regulations that change the Ability standards for an Affordable Care Act (ACA) premium tax credit (PTC) to fix the “family glitch” by providing that, for taxable years beginning after 2022, cost-effective employer-sponsored coverage for an employee’s family members are based on the employee’s cost to cover the employee and those family members, instead the cost of employee-only coverage (see our Checkpoint article). We also reported on related IRS guidance allowing participants in non-calendar-year plans to revoke their elections for family health coverage midyear to allow one or more family members to enroll in a good health plan through an Exchange (QHP). The IRS has now posted a correct version of the guidance that does not include the non-calendar-year plan requirement. Under the correct guidance, cafeteria plans—regardless of the plan year—can be improved to allow prospective midyea...
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