Individuals will have the opportunity to transfer funds from an individual retirement account (IRA) to a health savings account (HSA) under the terms of an Internal Revenue Service (IRS) notice that implements a 2006 amendment to HSA legislation. Notice 2008-51 provides for a “qualified HSA funding distribution,” a one-time transfer from an individual’s IRA to an HSA. Such a distribution generally will be excluded from income and not subject to the 10% early distribution penalty that otherwise applies when IRA funds are withdrawn before age 59½. 

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   Check Cafeteria Plans for Compliance

Over the past 20-plus years, the Internal Revenue Service (IRS) has issued, in dribs and drabs, regulations, notices and other guidance on Sec. 125 cafeteria plans. In proposed regulations effective in general for 2009 plan years, the IRS now has consolidated its cafeteria plan guidance, along with clarifying and elaborating on various cafeteria plan issues. The regulations are lengthy—124 pages—so in this article we highlight some of the points that are most significant for employers that offer some type of cafeteria plan. 

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“Respondeat superior” is a Latin phrase that translates “let the master answer.” This is legal jargon relating to the breadth of the employer’s responsibility for the actions of his employees. Literally, and in basic terms, any injurious or wrongful act of an employee within the course and scope of his employment creates liability for the employer (the master)This is commonly known as “vicarious liability.” 

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