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IRS Issues Favorable Letter Ruling Regarding 401(h) Accounts
Groom Law Group 
[Guidance Overview] Dec. 2, 2025 "An employer requested a PLR that a 401(h) account can pay for the medical benefits of retirees whose pension benefits have been annuitized in a 'lift out' under the employer's two pension plans. The PLR concludes that the payment of medical benefits from the 401(h) accounts for annuitized retirees does not violate Code section 401(h) or the Code section 401(h) regulations or otherwise jeopardize the tax-qualified status of the pension plans under Code section 401(a)." MORE >> |
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