Adoption Assistance Plans
A Simple, No-Cost Method to Encourage Adoption
By helping to defray the high cost of adopting a child, an adoption assistance plan gives an employer the opportunity to boost employee morale and help establish greater equality between the benefits provided to adoptive families and families with biological children. Using this website, even the most cost-conscious employer can accomplish this goal without any out-of-pocket expenditures or employer funding by simply implementing our free model adoption assistance plan as part of its existing Section 125 cafeteria plan. As an employer, you can reduce the financial barriers that may hinder a child's adoption by maximizing the adoption tax benefits available to your employees.
The federal tax code allows an exclusion from federal income taxes for employer payments and reimbursements of adoption expenses made under an adoption assistance plan -- but only if the plan and the benefits meet certain specific requirements. In addition, adoptive parents may qualify for a tax credit for their adoption expenses. If the federal tax relief benefits are properly maximized, the often overwhelming financial barriers facing adoptive parents can be reduced in most adoptions by more than two-thirds (and often eliminated in the adoption of a child with special needs). For example, the costs of an adoption costing $20,000 can be reduced by more than $14,000 so that for many parents the after-tax costs can be less than $6,000.
Contacts
- David R. Fuller
+1 202 756 8302
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