Are these plans subject to non-discrimination rules?

The IRS extends a safe harbor for certain premium only plans where only pre-tax salary contributions for premiums (no HSA contributions) are provided. However, the ownership rules discussed above are still applicable as well as the eligibility rules (all eligible employees can participate and can elect the same salary reductions for the same benefits regardless of their position within the company). If you do not meet the safe harbor, a series of mathematical tests must be completed.

FlexBank can help. We will test your plan, offer solutions if your plan does not pass, and provide written results. Contact our Compliance Department via phone 88.677.8373 or email Compliance@FlexBank.net for more information.