Self-insured MERP (IRC Section 105(h))

[Guest Sieve]

Are there any IRS pronouncements or other guidance (or inferences)--however obtuse--that would lead to the conclusion that the statutory/regulatory temporary safe harbor from coverage which applies to qualified plans in merger/acquisition situations (see IRC Section 410(b)(6)© & Treas. Reg. Section 1.410(b)-2(f)) also applies to self-insured MERPs when a merger/acquisition occurs?

[J Simmons]

Did someone say 'obtuse'? Here I am!

Rev Rul 2002-32 deals with continuing health flex accounts for transferred employees in a mid-year asset sale.

Treas Reg § 1.105-11 incorporates by reference two IRC § 410 rules: IRC § 410(b)(1)(B) discriminatory classification of employees (Treas Reg § 1.105-11©(2)(ii)) and IRC § 410(a)(3) eligibility year of service (Treas Reg § 1.105-11©(2)(iii)). Does that allow for any extrapolation to IRC § 411(b)(6)©? Both the minimum coverage rules of 401a QRPs and the excess reimbursements calculations of 105h MERPs depend on a plan year concept, and the IRC § 411(b)(6)© safe harbor from coverage is one involving a change during a plan year. Arguably the same reasons for the safe harbor from coverage would apply to 105h discrimination rules.

That's all I have.

Mr. Obtuse,

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