Section 105 Plan Administrators

Complete the following steps to formally hire your spouse or hire an employee.

Section 105 plan administrators.

We believe the hra is a better product for small businesses than section 105. The plan is designed and intended to qualify as an accident and health plan within the meaning of section 105 of the internal revenue code of 1986 as amended and to comply with the requirements of irs notices 2002 45 and 2013 54 as a health reimbursement arrangement under the affordable care act. As a small business it is crucial to follow the irs and department of labor regulations to ensure that a section 105 plan is set up properly and qualifies for section 105 tax treatment. Our integrated administrative solutions benefit accounts agriplan section 105 bizplan section 105 emergency response accounts fsa funded hra giveback hra hsa payroll premium only plan pop transit parking universal benefit account.

As such it is recommended that businesses work with a qualified plan administrator and certified public accountant cpa so that the most appropriate plan for the business is chosen. You will be provided with instructions regarding section 105 plan setup maintenance procedures etc. It s a self funded health plan. Employers choose to self fund their health benefits because it.

In situations where an employee incurs more medical expenses than the plan allows the additional expenses can be. The benefits of section 105 plans. There are numerous variations of the section 105 plan including. As of january 2017 zane benefits is no longer offering self insured section 105 plan administration tools.

There are two main reasons employers use section 105 plans. Employers are the sole contributors to the plan. Section 105 sets the following requirements for an eligible plan. Section 105 administrative handbook i ncludes sections on section 105 administration non discrimination testing and reporting and disclosure information.

In contrast to a section 125 plan a section 105 plan cannot be funded through reduction of the employee s salary whether voluntary or involuntary. Typically the employer will consult with an administrator to ensure that the plan is tax compliant and meets the definition for a section 105 plan. Instead our product supports the small business hra a new compliant reimbursement arrangement specifically for businesses with fewer than 50 employees. Health reimbursement arrangements hras medical expense reimbursement plans merps health flexible spending arrangements fsas accident and health plans both insured and self insured and more.

With the section 105 base hra an employee is able to carry forward unused benefit amounts to subsequent plan years up to the maximum carry forward amount established by the employer at the onset of the plan administration. A common reason employers use a section 105 plan is it is a self funded health plan where the employer reimburses employees for health benefits rather than pay premiums to an insurance company. Section 105 of the internal revenue code allows employers to establish a written plan to reimburse medical expenses.