namealreadyinuse

The earnings will be 100% taxed. Are you asking about future tax rates (impossible to predict, of course)?

Plan comp = it depends on the terms of the plan. The general W-2 definition would be $110K

mjb may be correct, but without knowing more facts it doesn't sound good to me. Is the insurance company on board witht this "arrangement"? Could be insurance fraud or a MEWA if there is no basis for the relationship.

The 409A issue raised in the initial thread is retiree medical. That is where the problem lies.

Are you going to end up with two houses or one? It sounds like you may be selling a house that you borrowed to purchase and want to borrow more to buy a replacement. You should confirm that the terms of your loan don't make the home extra collateral for the loan or that the terms are payable on sale of the home. From IRC perspective, there shouldn't be anything wrong with a second personal residence loan if the plan and loan documents don't prohibit it.

Can't you merge it into another Roth IRA and use the basis? If that is your only Roth IRA, it won't work, but it should if you have other Roth IRA money.

Ok then, partners or s corp shareholders. Anyone who cannot participate in a cafeteria plan but participates in a contributory self-insured medical plan. The after-tax participant contributions are plan assets that must be held in trust under ERISA. The DOL's nonenforcement of the trust requirement in ERISA Technical Release 92-1 won't apply.

Pretty common (very common?) situation we believe . . . Non-employee sole proprietor participates in a contributory self-insured health plan. Any premiums paid by the sole proprietor will be after-tax. These after-tax contributions are subject to a trust requirement, aren't they? What do people REALLY do??

Self-Insured Health Plan with Participant Contributions Through Cafeteria Plan - We understand that Tech Release 92-1 and preamble to plan asset regulations won't exempt participant contributions from self-employed (sole proprietors) from trust requirement because they are not under a cafeteria plan. What do people do? Wouldn't a trust for just these contributions ruin using 92-1 for the cafeteria plan contributions?