Ponderer33 Posted June 1, 2020 Posted June 1, 2020 Other than the risk of bankruptcy or other loss, is there any problem with an employer sponsoring a HRA for eligible retirees with notional accounts tracking reimbursement from current operating funds?
BenefitJack Posted June 2, 2020 Posted June 2, 2020 Financial statement impact, non-discrimination test requirements, notice/disclosure? All of these and more are considerations. Problems? Ponderer33 1
Luke Bailey Posted June 2, 2020 Posted June 2, 2020 Ponderer33, if you don't have contributions from retirees, you would not be required to have a trust, because no plan assets. If you do have a trust, tax issues would arise. You would probably want to structure as VEBA under 501(c)(9). Ponderer33 1 Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
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