Employer Cafeteria Plan

[Guest Daniel Fisher]

I need some confirmation on a question.

Can an Employer make a contribution to an Employee's medical reimbursement account?

If yes, can that contribution only be made to certain Employees (mostly to NHCE's)?

If yes, can those funds in the medical reimbursement account be used to pay the premium for the Employer's group health care program?

Thanks in advance to anyone who can help me out.

[GBurns]

Yes.

Most likely no.

Definitely NO. However, this is because you said "reimbursement". If the money is used to pay the premium, that is okay. If you mean reimburse the employee for the premiun deducted under the cafeteria plan, then NO. You cannot reimburse the employee for the amount that was previously deducted on a pre-tax basis.