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HRAs for highly compensated employees


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I'm hoping someone can help me with an issue that falls outside my typical practice area.  I have a client who wants to establish an accrual account into which the company would make annual contributions.  The purpose of the accrual account would be to reimburse executives for health insurance premiums (or to pay those premiums directly to the insurance company) upon retirement from the company.  To summarize, this account would be funded during employment, but would reimburse the HCI during retirement.

First question: is this considered a "self-insured" medical reimbursement plan under 105?  Or would it be considered a "fully-insured" health plan?

I'm somewhat familiar with HRAs (health reimbursement arrangements).  From my research, it appears that this type of arrangement would be required to meet the discrimination testing under 105(h).  However, if it's considered "fully insured," I'm unclear if discrimination testing still applies.

The other confusing element of this for me is the application of the ACA to these types of plans.  There were some early proposed regs stating that fully insured plans would have to comply with 105(h) discrimination testing, but I have not been able to find if those rules were finalized.

In short, the client wants to provide an executive benefit that would pay for post-retirement health insurance premiums on a tax-free basis.  (I know they can do this on a taxable basis through a 457(f) plan).  Any insights on this issue would be much appreciated.

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