SIMERPU RESEARCH · SOURCE RECAP
New IRS Memo Confirms Tax Treatment of Wellness Programs & Incentives
SIMERPU recap and commentary: Mardy Gould
Opened — main text retrieved
Quick recap
Explains the 2016 CCA’s treatment of wellness incentives and premium reimbursements, emphasizing that tax rules remain separate from other wellness compliance requirements.
SIMERPU’s viewpoint
The 2016 explanation is useful for showing that wellness rules can address different questions. SIMERPU would distinguish participation and program-compliance requirements from the treatment of incentives and premium reimbursements. That helps employers understand why one compliance statement may not answer the entire review.
What this source contributes
The explanation makes clear that different wellness compliance rules address different questions.
What remains unanswered
An employer needs separate support for program classification and the treatment of its incentives or premium reimbursements.
Mardy Gould’s take
I would ask what a compliance statement actually covers. Does it address participation rules, a premium or a payment to the employee? Keeping those answers distinct helps the employer understand the program and prevents a valid explanation of one component from being stretched to cover the entire arrangement.
Questions I would bring to the conversation
1. Which compliance question does each statement answer?
2. What supports the treatment of the incentive or reimbursement?
3. How do the separate analyses fit the actual program?
Mardy Gould · Co-Founder, SIMERPU →
What would change our assessment?
A complete set of fact-specific analyses could address the separate questions; one general compliance label would leave them unresolved.
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: Lisa Van Fleet
Publisher: Bryan Cave / BCLP; accessible through JD Supra
Original Publication Date: 2016-06-15
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 the original 2016 memorandum explained in the article.
Read the SIMERPU recap →
Incentives for Nondiscriminatory Wellness Programs in Group Health Plans
Federal Register
Source position: Neutral / explanatory
Compare the separate wellness nondiscrimination framework.
Read the SIMERPU recap →
Frequently asked questions about medical expenses related to nutrition, wellness and general health
IRS
Source position: Neutral / explanatory
Add the medical-purpose context for services and expenses.
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: Not stated
Source Type: Law firm analysis
Model Discussed: IRS Chief Counsel Memo
Position: Neutral / explanatory
Period: Historical — through 2022
Retrieved: October 31, 2026
Research and date notes
JD Supra credits Lisa Van Fleet and BCLP; original BenefitsBryanCave URL now returns parking content. Original authorship retained. Alternate version/host: http://benefitsbryancave.com/new-irs-memo-confirms-tax-treatment-of-wellness-programs-incentives/
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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