OK to only offer Section 125 accounts only to salaried employees, not the hourly employees?

[Guest Darla K]

Can an employer select to only offer salaried employees a Section 125 account and not the hourly employees? Thanks.

[g8r]

Yes, if you can pass the nondiscrimination rules in IRC 125.

[Guest carsca]

And if the plan can pass the nondiscrimination rules of Section 105, if the plan is self- insured.