waid10 Posted May 15, 2006 Posted May 15, 2006 Employer contributes an amount equal to 18% of employee's salary toward the organization's (fully-insured) health plan premiums. If the 18% is more than enough to cover the premiums, then the excess is contributed to the employee's 403(b) plan account. If the 18% is not enough to cover the health plan premiums, the employee must pay for the difference. Is this arrangement legal? Since the 18% is based upon individual employee salary, higher paid employees are going to get a higher contribution. Presumably, since it is a fully-insured health plan, the health plan contribution piece is fine. But does the arrangement violate 403(b)(12) on the retirement plan side?
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now