419(e) Welfare Benefit Plans
419(e) Welfare Benefit Plans Meaning:
In retirement terminology, the term 419(e) Welfare Benefit Plan refers to a United States retirement plan which meets the requirements of the Internal Revenue Code or IRC’s Section 419(e). This section of the IRC defines and details the qualification rules for 419(e) trusts and plans. The 419(e) Welfare Benefit Plan is an employer sponsored employee benefit plan which provides the employee with welfare benefits. The 419(e) Welfare Benefit Plan offers a number of benefits to the employees and business owners from medical coverage to death benefits, as well as long-term care benefits at retirement.
In retirement terminology, the term 419(e) Welfare Benefit Plan refers to a United States retirement plan which meets the requirements of the Internal Revenue Code or IRC’s Section 419(e). This section of the IRC defines and details the qualification rules for 419(e) trusts and plans. The 419(e) Welfare Benefit Plan is an employer sponsored employee benefit plan which provides the employee with welfare benefits. The 419(e) Welfare Benefit Plan offers a number of benefits to the employees and business owners from medical coverage to death benefits, as well as long-term care benefits at retirement.
For example, an employee that contributes to the 419(e) Welfare Benefit Plan through their employer is entitled to other services during their employment, as well as retirement benefits upon retirement. The employer decides which benefits to offer employees and contributions from top level employees are segregated from lower level employees. Also, 419(e) Welfare Benefit Plans are known as “single employer” retirement plans, meaning that all benefits are paid by one company. No pooling of resources among the workers from other companies is permitted and the plans are usually managed by an independent trustee who holds the assets of the trust. Many of the other IRC rules that apply to other retirement plans also apply to 419(e) Welfare Benefit Plans.