Who is responsible for complying with the Section 105(h) nondiscrimination tests?
: The plan administrator (in most cases, the employer) is responsible for ensuring compliance with the Section 105(h) nondiscrimination rules. Section 105(h) nondiscrimination rules are complex. However, a quick review of the employer’s benefit, contribution and eligibility strategies will help most employers determine whether or not they need to perform the detailed nondiscrimination tests. Read more about Section 105(h) nondiscrimination testing. Q): Do the Section 105(h) rules apply only to health care plans? A): Yes. The rules would only apply to medical coverage. They do not apply to stand-alone dental or vision plans, disability plans or life insurance plans. Q). When defining highly compensated employee (HCE), does the definition include 25% of all eligible employees or 25% of all participating/enrolled employees? A). The Section 105(h) definition of highly compensated employee (HCE) includes the top 25% of all employees, not just those covered by the plan. Q). If we offer the s
