bamma Posted October 17, 2006 Posted October 17, 2006 In an Erisa plan, are employers required to set aside funds to pay for benefits?
Guest Carol the Writer Posted October 17, 2006 Posted October 17, 2006 If you are talking about health and welfare benefit plans, my understanding of IRC Section 501©(9) is that an employer is prohibited from advance-funding a post-retirement health plan. However, I have not been dealing in that field for a while. Perhaps someone has more up-to-date knowledge than I do.
GBurns Posted October 18, 2006 Posted October 18, 2006 Are there any employment contracts or CBAs involved? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
Lori Friedman Posted October 18, 2006 Posted October 18, 2006 Multiemployer plans, which provide welfare benefits pursuant to collective bargaining agreements, are required to hold their assets in trust. The trusts apply for recognition of tax-exempt status under I.R.C. Sec. 501©(9). Otherwise, most employee benefit plans are funded by general assets. Lori Friedman
leevena Posted October 18, 2006 Posted October 18, 2006 Bamma...could you be a little more specific and tell us what plan or plans your question is about?
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