Guest modoca Posted August 19, 2014 Posted August 19, 2014 Can an employer contribute to an HRA on behalf of active employees and prohibit benefits from being used until the participant reaches retirement age? Would this fall under the retiree-only exemption?
masteff Posted August 20, 2014 Posted August 20, 2014 ERISA 732(a) and IRC 9831(a) refer to plans that have less than 2 participants who are current employees. Unless you know of another IRC or ERISA section that trumps the above, then no because your scenario involves current employees. I got the section reference from here: http://www.gpo.gov/fdsys/pkg/FR-2010-06-17/pdf/2010-14488.pdf Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
GBurns Posted August 23, 2014 Posted August 23, 2014 I do not think that it would be regarded as being retiree only because it involves current employees. It is not normal, outside of the public sector, to pre-fund retiree health benefits, but to instead pay-as-you-go. However, those that do use either a 401(h) or a VEBA. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
GBurns Posted January 24, 2016 Posted January 24, 2016 Regarding the pre-funding of retiree health benefits. You might want to look at these which should all be available at irs.gov : PLR 9219023 PLR 201345020 PLR 201245010 PLR 201003007 George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
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