Opt. out of health Ins., but mandatory "reimbursement" to 40

[Guest Bob Rosenbaum]

Some of my clients have opted out of employer health Ins. since covered on spouses plan. Employer Has always paid them money in lieu, BUT, mandated that it go to the 401(k) and sit till they retire (not evfen available if over 59 1/2!). Also, employer now states that this money approx $2,000 per year is to be treated like a voluntary sdalary deferral and lowers what they may put in 401(k) or 403(b){yes, they are a 501C3, with an old 401(k) also}. My clients want this money to be paid to them directly and not aaffect their MEA.

I know that the employer doesn't have to pay for health premium not used, but since they do, must it be restricted, etc.?