Tax Facts

384 / May health benefits be provided for employees under qualified pension and profit sharing plans?

Updated: March 13, 2024 at 05:07 AM


Yes. A qualified profit sharing plan may provide health insurance benefits for its employee-participants within limits ( Q 3830). A qualified pension plan may provide disability pensions, but will not qualify if it provides regular health insurance benefits for active employees. A qualified pension plan may provide health insurance benefits for retired employees ( Q 3830). For tax consequences to employees, see Q 394 and Q 3941.


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