Discriminatory Self-Funded Medical Plan

[Christine Roberts]

I am wondering if any of you could opine as to the Service's level of enforcing nondiscrimination rules under 105(h) - specifically a waiver of eligibility waiting period for employees at the vice-president level or above, most of whom constitute highly compensated individuals.

I believe a goodly number of non-profit organizations maintain self-funded plans with provisions like these, which are common and permissible in fully insured arrangements. I am wondering if anyone has ever seen adverse tax consequences befall individuals in such arrangements.

[Guest Harry O]

Are you asking what your chance are if you play the audit lottery?

For this issue, pretty good.

That said, this sounds like a drop dead loser from a technical standpoint.