What is Section 105(h)?
Section 105(h) of the Internal Revenue Code requires that self-funded health plans
do not discriminate in favor of highly compensated individuals (HCIs) with respect to:
-
Eligibility: Who is allowed to participate in the plan
-
Benefits: What benefits are provided under the plan
Who are HCIs?
Highly Compensated Individuals include:
- One of the five highest-paid officers
- A shareholder who owns more than 10% of the employer's stock
- Among the highest-paid 25% of all employees
This Testing Wizard Will Help You:
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