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Discrimination Testing for Health Plan


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Hello everyone!

Quick question. Let's say a small business with 10 total employees has a health plan. For 5 individuals (the owners, and their spouses), the company pays their costs in full for the health plan. For the others, they contribute towards the health plan. Is the money paid by the company taken into account when running the discrimination tests under Sec. 125?

Thanks so much for any thoughts.

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