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IRS Rules That Payment of 401(h) Account Benefits to Pension-Eligible Active Participants Won't Jeopardize Plan Qualification
Groom Law Group Link to more items from this source
[Guidance Overview]
Feb. 22, 2023

"The qualification concern arises under the Treas. Reg section 1.401-14(b)(1) requirement that a 401(h) account only pay medical expenses of 'retired' employees, their spouses, or their dependents. [PLR 202305001] ruled that the plan would not lose its qualified status because the 401(a)(36)-eligible active participants are eligible to receive pension benefits and, therefore, meet the definition of 'retired employees' under the terms of the plan."  MORE >>

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