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105(h) Nondiscrimination with carryover

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For HRAs that carryover unused employer contributions, does this impact nondiscrimination testing (i.e., $1000 per employee every year is contributed to the HRA, and unused amounts can be used in the following years). Do actual reimbursements need to be considered for testing, or can contributions be used somehow?

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Regs §1.105-11 states: "This test is applied to the benefits subject to reimbursement under the plan rather than the actual benefit payments or claims under the plan. The presence or absence of such discrimination will be determined by considering the type of benefit subject to reimbursement provided highly compensated individuals, as well as the amount of the benefit subject to reimbursement." This seems to leave the door open. Read the Regs.

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