Audience
Who 401(h) plans are for.
401(h) is a niche strategy with a specific profile. Here's who tends to evaluate it most often.
High-income business owners
Owners of stable, profitable businesses already using — or considering — a defined benefit or cash balance plan, who want to formalize retiree medical benefits.
CPAs & tax advisors
CPAs evaluating whether a 401(h) component fits an existing qualified plan and what tax-efficiency it may add for owner-clients.
Financial advisors
Advisors building retiree healthcare into a holistic plan for owner-led businesses and senior employees.
Retirement plan consultants
Consultants designing DB/CB plans for closely held businesses where retiree medical benefits are a strategic element.
Actuaries & TPAs
Plan professionals responsible for funding, documentation, nondiscrimination, and administration of a plan containing a 401(h) sub-account.
DB / cash balance plan sponsors
Existing DB or cash balance plan sponsors evaluating whether to add or refine a 401(h) sub-account in their plan.
Next step
Find out whether a 401(h) strategy may fit
Talk with a 401(h) specialist about your plan, participant group, and retiree medical objectives.
Availability, tax treatment, and plan design depend on the facts and circumstances of the employer, plan document, participant group, and applicable law. 401h.com provides general educational information only — not tax, legal, actuarial, investment, or ERISA advice. Consult qualified tax, legal, actuarial, and plan professionals.