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premium only plan safe harbor


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Guest geekofgeeks
Posted

Does a cafeteria plan that offers only two choices (dental coverage, vision coverage) qualify as a premium only plan? I'm trying to fit within the premium only plan safe harbor for nondiscrimination testing.

In the proposed regs, premium only plan is defined as a "cafeteria plan that offers as its sole benefit an election between cash . . . and payment of the employee share of the employer-provided accident and health insurance premium (excludible from the employee's gross income under section 106)."

Posted
Does a cafeteria plan that offers only two choices (dental coverage, vision coverage) qualify as a premium only plan? I'm trying to fit within the premium only plan safe harbor for nondiscrimination testing.

In the proposed regs, premium only plan is defined as a "cafeteria plan that offers as its sole benefit an election between cash . . . and payment of the employee share of the employer-provided accident and health insurance premium (excludible from the employee's gross income under section 106)."

Yes. Dental and vision both qualify as accident and health.

William C. Presson, ERPA, QPA, QKA
bill.presson@gmail.com
C 205.994.4070

 

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