419(e) Post-Retirement Medical Reimbursement Plan
Basics: Employees receive a valuable employer-provided benefit while the employer receives a current tax deduction.
Funding: Tax-deductible contributions allow employers to use pre-tax dollars to fund a reserve account for post-retirement and long-term health care benefits.
Non-discrimination Requirement: The benefit must be offered to all full-time employees meeting a nondiscriminatory minimum age and service requirement.
Qualified or Nonqualified: Not a qualified plan. There are no premature withdrawal penalties, minimum distributions or maximum contribution or compensation limits.
