Discrimination in Employee Benefit Plans
IRC Section 105(h)--Safe Harbor Test

Background Reading

IRC Section 105(h) provides that the self-funded health care plan (a) is non-discriminatory if the Plan meets the eligibility tests by passing either the 70% or the 70/80% test and (b) is non-discriminatory in operation by showing that there is not only an absence of per se discrimination but that there is no possibility of there being any discrimination by groups or classes of employees.