Post tax premiums and MERP

[Guest cjsmith]

Hi,

I have a MERP that allows post tax premiums to be submitted for reimbursement.

I was looking for clarification on what is meant by "post tax"

Thank you!!

[GBurns]

Not deducted pre-tax under a section 125 cafeteria plan. Post tax is after tax calculations.

What is the benefit of doing so?

[Guest cjsmith]

Not deducted pre-tax under a section 125 cafeteria plan. Post tax is after tax calculations.

What is the benefit of doing so?

Meaning, I can only submit for reimbursement premiums, which have been taxed?

[GBurns]

Premiums that were pre-taxed are never reimburseable. That would be double dipping. See Rev Rul 2002-3.

The reimbursement of premiums paid with taxed money (post tax) is addressed in Rev Rul 61-146.

I am not sure that many MERPs are worded or set up for such premium reimbursement so check the plan document.

I usually see a separate special MERP set up specifically for this.