Do you have a cafeteria plan or sponsor any self-insured health plans, including a health reimbursement arrangement?
If so, then your plan is subject to the nondiscrimination testing requirements under Section 125 for cafeteria plans and 105(h) for self-insured plans. These testing requirements, which are often overlooked, particularly by fully insured plans, are designed to ensure that the plan is not discriminating in favor of highly compensated employees (HCEs). For plans that fail the nondiscrimination testing, there can be significant tax consequences for plan participants.
View the webinar recording above to learn the following:
- What plans are subject to nondiscrimination testing
- What makes a plan discriminatory
- How to avoid discrimination in favor of HCEs
- Consequences for operating a discriminatory plan