Guest MikeAIGFA Posted January 10, 2008 Posted January 10, 2008 Hello - I was hoping someone could provide some insight on the following: How are employers (or aren't they) offering medical subsidies for their retirees? Currently one of our clients has a medical subsidy for those employees retired with their DB plan; however, no medical subsidy is provided to the DC (401a) participants and they (client) would like to provide a benefit to those DC employees. If anyone can provide any insight on this subject, I would greatly appreciate it. Thank you in advance. Mike O'Sullivan
QDROphile Posted January 10, 2008 Posted January 10, 2008 The DB plans may be providing benefits under section 401(h) of the tax code. A 401(k) plan cannot provide benefits under 401(h), but a money purchase pension plan could.
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