The private letter ruling that applies directly only to that particular program, says that the plan would not cause the defined contribution plan to be treated as offering a cash or deferred arrangement. (Photo: Allison Bell/ALM)
The Internal Revenue Service has blessed a union's proposal to create a program that combines a health reimbursement arrangement (HRA) with a defined contribution retirement plan.
The plan participants would be able to choose each year how to allocate the employer's contributions between the HRA and the profit-sharing plan each year, according to the IRS.
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Allison Bell
Allison Bell, a senior reporter at ThinkAdvisor and BenefitsPRO, previously was an associate editor at National Underwriter Life & Health. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached through X at @Think_Allison.
