The Medical Loss Ratio (MLR) rules under Health Care Reform require an issuer to provide rebates if its medical loss ratio (the amount of health insurance premiums spent on health care and activities to improve health care quality) falls short of the applicable standard during a reporting year. Each year's rebates must be provided by issuers to policyholders (typically the employer that sponsors the plan) by September 30 of the following year.
All organizations sponsoring 403(b) plans must now “restate” their plan documents onto an IRS approved document by March 31, 2020. Restatement on an IRS pre-approved plan gives the sponsoring organization reliance that the provisions in the pre-approved plan are compliant with IRS rules and regulations and that the plan assets are protected from taxation. The IRS approvals of these documents are being issued now.
There are several types of 401(k) plans available to employers - Traditional 401(k) plans, Safe Harbor 401(k) plans and SIMPLE 401(k) plans. Different rules apply to each. We will focus, here on the Safe Harbor plan.
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