Setting up a POP

Technical topics regarding tax preparation.
#1
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797
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30-May-2014 7:38am
Location:
NC
I'm sure everyone know this but me... do insurance professionals who set up group insurance plans normally provide the documentation for the section 125 premium only plans at the same time? Client is asking if my firm will help set up the POP but my firm does not prepare the documents. Do any of you guys set these up for your clients? If not, who do you send them to?

Also, you still cannot reimburse rank & file employee stand alone health insurance premiums without a HRA, correct? And the HRA is separate document from the POP, correct?

Thanks!
 

#2
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1246
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22-Apr-2014 5:22pm
Location:
Upstate, NY
Hmm....I don't think that the insurers do that. When I got my first business health plan thru Excellus (Blue Cross Blue Shield), they did not provide me with the 125 plan. I got it thru Core Documents on my own. I have sent numerous clients there to get them as they are reasonably priced and quick.

Now there are different flavors of 125 plans, so be sure your client selects the right one. I have tended to guide them in the process, but they get the plan and define it. Core Docs has a good set of questions they ask to be sure the client does it right.

As to the HRA question.....that is a complex topic. Again I will refer you to Core Documents as they are a good resource on all this. You can try to search for it on this site, but I THINK, the rules may have changed sometime recently from what they were at the onset of the ACA.
 

#3
Wiles  
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5058
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21-Apr-2014 9:42am
Location:
CA
Gut check time. Please let me know if I am missing something.

I have a Sch C client this has a group plan and covers 100% of employee health insurance but nothing for spouse & dependents. Employees are currently reimbursing the cost for spouse & dependents on an after tax basis. I informed the client about the 125 premium only plan and how this reimbursement can be pre-tax. The client replied that they already looked into this and their broker said the POP is not allowed because the employee pays no portion of their own health insurance costs.

Say what?
 

#4
Doug M  
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3558
Joined:
22-Apr-2014 1:09pm
Location:
Oregon
A POP still has to meet the non-discrimination requirements of Section 125. I would think this is the only real barrier. There is a safe harbor test for Section 125 premium only plans.
 


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