SIMERPU RESEARCH · SOURCE RECAP
Wellness program benefits: Tax free or not?
SIMERPU recap and commentary: Mardy Gould
Opened — main text retrieved
Quick recap
Surveys 2016–2017 IRS memoranda on wellness rewards, fixed indemnity and self-funded arrangements. Identifies income and employment-tax consequences by benefit and funding design.
SIMERPU’s viewpoint
The Journal of Accountancy survey is valuable as a map of the earlier IRS memoranda. SIMERPU would use it to distinguish reward, indemnity and self-funded designs before moving to current documents. Its historical coverage helps readers recognize recurring questions, while later developments still need to be considered.
What this source contributes
The survey organizes several older memoranda by benefit and funding design, giving readers a useful historical map.
What remains unanswered
Its date matters. The survey should be supplemented with later materials before treating it as a complete account of the discussion.
Mardy Gould’s take
I like an overview that helps an employer sort the categories before evaluating a proposal. I would use this article to build that map, then add the newer documents and the provider’s actual design. The result should make the important distinctions easier to explain to someone encountering the subject for the first time.
Questions I would bring to the conversation
1. Which historical category resembles the proposed arrangement?
2. What later guidance needs to be added?
3. Which facts would place the proposal in a different category?
Mardy Gould · Co-Founder, SIMERPU →
What would change our assessment?
Later authority and documented design differences could change the application of the historical overview, without erasing its value as background.
Read the original source
The original author and publisher are credited below. Continue to their article, document or source page for the complete context.
Original Author: Dayna E. Roane, CPA/ABV, CGMA
Publisher: Journal of Accountancy
Original Publication Date: 2017-10-01
Read this alongside…
Each connection has a specific purpose. Compare the sources’ facts, positions and publication dates as you read.
CCA 201622031 — Tax Treatment of Wellness Program Benefits and Employer Reimbursement of Premiums Provided Pre-tax Under a Section 125 Cafeteria Plan
IRS Office of Chief Counsel
Source position: Neutral / explanatory
Read one of the underlying memoranda rather than relying only on its summary.
Read the SIMERPU recap →
Frequently asked questions about medical expenses related to nutrition, wellness and general health
IRS
Source position: Neutral / explanatory
Add more recent guidance on medical versus general-wellness expenses.
Read the SIMERPU recap →
What do we need to know when approached by vendors offering payroll tax savings programs?
WTW
Source position: Critical
Turn the historical map into questions for a current vendor discussion.
Read the SIMERPU recap →
Keep learning with SIMERPU
Build your understanding with learning resources, the free Professional Roadmap and our approach to reviewing sources.
About this source
Original Updated Date: 2017-10-01 (page metadata)
Source Type: Professional accounting / benefits publication
Model Discussed: Wellness Program Benefits and Tax Implications
Position: Critical
Period: Historical — through 2022
Retrieved: October 31, 2026
Research and date notes
No additional retrieval note.
Each record identifies the material retrieved. SIMERPU’s viewpoint and Mardy Gould’s take are editorial commentary; the source-position label describes the original source’s stance. Read the original and its qualifications when evaluating a particular arrangement.
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