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Old 04-28-2013, 10:54 PM   #1
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smokin goose on Section 105 Benefits Plan
 
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Section 105 Benefits Plan Section 105 Benefits Plan
Has anyone ever heard of or enrolled the "section 105 defined benefits plan"?
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Old 04-29-2013, 10:28 AM   #2
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Section 105 Benefits Plan Re: Section 105 Benefits Plan
Yes, and..............................................
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Old 04-29-2013, 10:42 AM   #3
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Section 105 Benefits Plan Re: Section 105 Benefits Plan
Yes, they are as old as the hills. Why?
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Old 04-29-2013, 12:11 PM   #4
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smokin goose on Section 105 Benefits Plan
 
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Section 105 Benefits Plan smokin goose is the thread starter for: Section 105 Benefits Plan

I'm talking about the 105 plan that The Total Financial Group came up with where the employee contributes to a reimbursement account and then are given a weekly loan which is secured with a credit life insurance policy. Most employees end up bringing home more money and employers save a bundle on FICA taxes.
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Old 04-29-2013, 12:21 PM   #5
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Section 105 Benefits Plan Re: Section 105 Benefits Plan
Originally Posted by smokin goose View Post
I'm talking about the 105 plan that The Total Financial Group came up with where the employee contributes to a reimbursement account and then are given a weekly loan which is secured with a credit life insurance policy. Most employees end up bringing home more money and employers save a bundle on FICA taxes.
That sounds like something that we have under section 125, I am just a policyholder thought, not an expert.
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Old 04-29-2013, 12:23 PM   #6
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Section 105 Benefits Plan Re: Section 105 Benefits Plan
Originally Posted by smokin goose View Post
I'm talking about the 105 plan that The Total Financial Group came up with where the employee contributes to a reimbursement account and then are given a weekly loan which is secured with a credit life insurance policy. Most employees end up bringing home more money and employers save a bundle on FICA taxes.
I thought a 105 dealt with health care costs? Is the employee just pocketing the money?

Also, what happens to all that interest?

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You can pay the premium or you can own the loss.
 
Old 04-29-2013, 12:55 PM   #7
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Section 105 Benefits Plan Re: Section 105 Benefits Plan
You need to be more specific about the "product" that you are discussing. I went to their website and could not find any information about it.
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Old 04-29-2013, 03:04 PM   #8
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smokin goose on Section 105 Benefits Plan
 
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Section 105 Benefits Plan smokin goose is the thread starter for: Section 105 Benefits Plan

It's pretty complex. It took me awhile to wrap my head around it. I haven't sold it. Just wondering if anybody here had. I don't even know if I could explain it correctly.
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If you've sold/enrolled it, you would know.
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Last edited by smokin goose; 04-29-2013 at 03:04 PM. Reason: Posts merged
 
Old 04-29-2013, 04:08 PM   #9
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Section 105 Benefits Plan Re: Section 105 Benefits Plan
Originally Posted by smokin goose View Post
It's pretty complex. It took me awhile to wrap my head around it. I haven't sold it. Just wondering if anybody here had. I don't even know if I could explain it correctly.
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If you've sold/enrolled it, you would know.
Your comment above (If you've sold/enrolled it, you would know) is not true. A Section 105 plan can be structured in a variety of ways. Generally speaking, it refers to Section 105 of the IRS code and allows an employer to reimburse employees for qualified medical expenses. Usually designed within a self-funded health plan for the employer group. It can also be used for HRA's. The origins of these plans goes back 50 or so years as a vehicle for one man group.

The use of a loan feature and the credit life insurance is new to me and makes me believe this is being used for something other than medical self-funding.

Also, Section 105
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Old 04-29-2013, 07:37 PM   #10
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smokin goose on Section 105 Benefits Plan
 
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Originally Posted by leevena View Post

Your comment above (If you've sold/enrolled it, you would know) is not true. A Section 105 plan can be structured in a variety of ways. Generally speaking, it refers to Section 105 of the IRS code and allows an employer to reimburse employees for qualified medical expenses. Usually designed within a self-funded health plan for the employer group. It can also be used for HRA's. The origins of these plans goes back 50 or so years as a vehicle for one man group.

The use of a loan feature and the credit life insurance is new to me and makes me believe this is being used for something other than medical self-funding.

Also, Section 105
Yes I realize the codes that make a 105 possible have been around for decades. If you have enrolled this particular plan you would know. My question was looking for someone who has implemented this specific plan, hence you have nothing further to contribute.
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