IRS PLR: Payment of Medical Benefits From Pension Plan Does Not Violate Section 401(h) (IRC §401)

The IRS has published a private letter ruling on IRC §401 stating that the payment of medical benefits from a pension plan’s 401(h) accounts for participants eligible for in-service retirement benefits under IRC §401(a)(36) does not violate Section 401(h) or Treas. Regs. §1.401-14. Additionally, the adoption of the proposed amendment will not adversely affect the qualified status of the Pension Plan or the tax-exempt status of its trust. [PLR 202531003]

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