Susan L. Posted November 10, 2021 Share Posted November 10, 2021 Can the assets of a qualified governmental retirement plan (defined benefit or defined contribution) be used to pay premiums for insurance to provide welfare benefits for active public employees? I am aware of 401(h) for retiree medical and 402(l) for retired public safety officers, but can this be done for actives? If your answer is "up to the amount allowed under the incidental benefit rule," do you know where I can find an understandable summary of that rule? Thanks! Link to comment Share on other sites More sharing options...
Peter Gulia Posted November 10, 2021 Share Posted November 10, 2021 About an “incidental” rule, consider Revenue Ruling 61-164, 1961-2 Cumulative Bulletin 58. Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
Susan L. Posted November 10, 2021 Author Share Posted November 10, 2021 Peter, thank you! I had not seen this Rev. Rul. and it is much more understandable than more recent guidance. Any thoughts on how we'd apply this guidance to a defined benefit plan (no accounts, one pool of assets, very overfunded, and an age 50 early retirement)? Link to comment Share on other sites More sharing options...
BG5150 Posted November 12, 2021 Share Posted November 12, 2021 [Insert Dungeons & Dragons joke here] QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
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