PDA

View Full Version : 105(b) primer



D_J
10-04-2012, 06:21 PM
What exactly is 105(b) and what are the benefits and requirements to an employer in offering it as an option to employees?

Thanks,
DJ

vangogh
10-05-2012, 01:55 AM
I can't say I know what 105(b) is or what you're looking for, but I did a quick Google search and found a couple of things. I'm assuming the 105(b) you're asking about has to do with accident and health insurance.

Here's a page from Cornell University Law School (http://www.law.cornell.edu/uscode/text/26/105) with a brief section about 105(b) and here's a PDF from the IRS (http://www.irs.gov/pub/irs-drop/n-10-38.pdf) that seems to have more detail.

Hopefully one or the other is helpful.

D_J
10-05-2012, 10:07 AM
I've seen some of the IRS stuff already, and I don't really understand what they're talking about. I'm looking for an explanation.

I think 105(b) outlines the ability of a business to basically create an employer-funded health savings account for employees, basically in place of offering a plan. But I'm not sure if that's accurate or what the details are. Does this have to be created and administered like a HSA? What expenses are covered? Is this an acceptable replacement for offering coverage under the ACA? What are the contribution limits?

Thanks,
DJ

vangogh
10-05-2012, 11:30 AM
I don't blame you for being confused by the IRS info. :)

I wish I had a good answer for you, but this isn't my area of expertise. I tried reading the the pages I linked to above and was just as confused by it as you were. Mainly I'm replying to keep the thread active in the hopes that someone who does know sees it and can answer.