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How do you make sure the insurance is non-discriminatory under IRS Section 401(b) rules?

April 26, 2017Insurance IRS non-discriminatory rules section sure

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How do you make sure the insurance is non-discriminatory under IRS Section 401(b) rules?

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By calculating insurance eligibility and coverage amount based upon the prior plan year’s contributions, the insurance is provided in a non-discriminatory fashion within the plan. Participants who made a contribution to the plan are eligible for insurance coverage that is equal to the amount of contributions in the prior plan year.