Laws regarding company dental reimbursements?

[Guest Lisssi]

My company is too small to get good rates from reputable dental plans. Instead, we want to reimburse our employees up to $1500/yr for dental expenses, as a taxable bonus. Are there any regulations that I should consider in regards to this potential benefit?

Thanks!

--Liss

[KIP KRAUS]

Why do it as a taxable bonus. Why not create a self-insured dental welfare plan and have the benefits be tax free to the employees and deductible to the employer. I believe the applicable IRC sections under which the plan should comply are 105 and 106.

A standard dental plan would have an annual maximum benefit per participant of around $1,500. As a self-insured plan you can design it any way you wish as long as it precludes individual selection and complies with ERISA.

You need a plan document, and an SPD to set the plan up. In my opinion, not a major undertaking. Dental plans are the easiest plans to self-insure.

[Guest Lisssi]

Kip, thanks for your advice. I'm not sure how I would go about setting up the plan you describe(haven't been doing this long...) We don't have any plans regulated by ERISA right now, and I'm not sure where to look up the IRC sections you cite. I also do not know what an SPD is. Do you know a good place to start researching self-insured plans?

--Liss