Reference
401(h) Glossary
Plain-English definitions of the terms that come up most often in 401(h) retiree medical benefit plan conversations — from incidental-benefit rules to VEBA, HRA, ERISA, and Form 5500.
401(h) Account
A separate sub-account inside a qualified pension or annuity plan used to pay certain retiree medical benefits.
Definition →TermSection 401(h)
The Internal Revenue Code section authorizing retiree medical benefit accounts within qualified pension plans.
Definition →TermIncidental Benefit Rule
The requirement that 401(h) medical benefits stay subordinate to retirement benefits in the same plan.
Definition →TermSeparate Accounting
Mandatory bookkeeping that isolates 401(h) medical assets from retirement assets within the same trust.
Definition →TermDefined Benefit Plan
A qualified employer plan that promises a specified retirement benefit, typically based on pay and service.
Definition →TermCash Balance Plan
A defined benefit plan expressed as a hypothetical account balance for each participant.
Definition →TermMoney Purchase Plan
A qualified defined contribution pension plan with required annual employer contributions.
Definition →Term401(a) Plan
The Internal Revenue Code section governing qualified retirement plans generally.
Definition →TermVEBA (501(c)(9))
A voluntary employees' beneficiary association used to fund employee welfare benefits.
Definition →TermHealth Reimbursement Arrangement (HRA)
An employer-funded arrangement that reimburses employees for qualified medical expenses.
Definition →TermHealth Savings Account (HSA)
An individual, portable account paired with a high-deductible health plan.
Definition →TermKey Employee
A defined IRC category that triggers special funding limits inside 401(h) accounts.
Definition →TermNondiscrimination
Rules preventing qualified plans from disproportionately favoring highly compensated employees.
Definition →TermActuarial Valuation
The annual calculation of plan liabilities and required contributions for a defined benefit plan.
Definition →TermForm 5500
The annual return filed by qualified retirement plans, including those with 401(h) accounts.
Definition →TermERISA
The federal statute governing private-sector employee benefit plans.
Definition →