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Section 125 Eligibility Safe Harbor IRS link

Scott A. Davis

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I did search for the below IRS Section 125 POP Eligibility Safe Harbor link, but have not found the correct one yet. Does anyone have it to share as I did not see it in other blogs or posts for Section 125 Non-Discrimination testing?    NOTE: A safe harbor exists where the POP will be deemed to satisfy all nondiscrimination tests if it "satisfies the safe harbor percentage test for eligibility." For example, a POP that might fail the Key Employee Concentration Test would be deemed to pass all tests if it passed the Eligibility Test. See §1.125-7(f) for more information. 

 I get https://www.irs.gov/irb/2007-39_IRB from September 24, 2007 of which I do not see the Eligibility Safe-Harbor.  Attached is from Zywave without the link, however lists a Eligibility Test from 2014 on pages 1-2. 


Nondiscrimination-Tests-for-Cafeteria-Plans-02-04-14 Zywave.pdf

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Here you go:

Prop. Treas. Reg. Section 1.125-7:

(f) Safe harbor test for premium-only-plans.

(1) In general. A premium-only-plan (as defined in paragraph (a)(13) of this section) is deemed to satisfy the nondiscrimination rules in section 125(c) and this section for a plan year if, for that plan year, the plan satisfies the safe harbor percentage test for eligibility in paragraph (b)(3) of this section.

(2) Example. The following example illustrates the rules in paragraph (f) of this section:

Example. Premium-only-plan.

(i) Employer F's cafeteria plan is a premium-only-plan (as defined in paragraph (a)(13) of this section). The written cafeteria plan offers one employer-provided accident and health plan and offers all employees the election to salary reduce same amount or same percentage of the premium for self-only or family coverage. All key employees and all highly compensated employees elect salary reduction for the accident and health plan, but only 20 percent of nonhighly compensated employees elect the accident and health plan.

(ii) The premium-only-plan satisfies the nondiscrimination rules in section 125(b) and (c) and this section.

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