Rev. Ruling 2005-55: minimum vesting standards.

• Position: IRS Update

Does a profit-sharing plan fail to satisfy the requirements of IRC Sec. 401(a)(7) if it provides a medical reimbursement account for each participant from which payments may only be distributed to reimburse the participant for expenses for medical care?

According to Rev. Ruling 2005-55, medical reimbursement accounts can't make distributions of medical...