Form 13069 

(September 2006) 

Employee Benefit Plan 

Section 401(h)

(Worksheet Number 13 – Determination of Qualification) 

INSTRUCTIONS — All items must be completed. A “Yes” answer generally indicates a 

favorable conclusion is waranted while a “No” answer indicates a problem exists. Please use 

the space on the worksheet to explain any “No” answer. See Publication 11433, Explanation 13, 

for guidance in completing this form. 

The technical principles in this worksheet 

may be changed by future regulations or 

guidelines. 

Name of Plan 

I. Benefits Plan Reference Yes No N/A 

a. Has the applicant requested consideration under section 401(h) or 420? If “Yes,” 

see section 16 and appendix of Rev. Proc. 2006-6, 2006-1 I.R.B. 204, and complete 

the remainder of this worksheet. If “No,” do not complete the remainder of this 

worksheet. [ ] 

b. Does the plan contain a medical benefits account within the meaning of section 401(h)? 

If “Yes,” complete the remainder of this worksheet. If “No,” secure amendments to include 

the section 401(h) account provisions or request an explanation from the applicant. 

[ ] 

c. Is the section 401(h) account part of a pension or annuity plan (including a money 

purchase pension plan)? [ ] 

d. Does the plan specify the medical benefits that will be available and contain provisions 

for determining the amount that will be paid? [ ] 

e. Does the medical benefits account specify who will benefit and limit eligible persons to 

retired employees, their spouses and their dependents? [ ] 

f. Does the plan specify either that contributions to such account are provided entirely 

from employer contributions or that they will be paid from employer and employee 

contributions? [ ] 

II. Subordination 

a. Does the plan provide that retiree medical benefits are subordinate to the retirement 

benefits such that the aggregate actual contributions for medical benefits, when added to 

actual contributions for life insurance protection under the plan, do not exceed 25 percent 

of the total actual contributions to the plan (other than contributions to fund past service 

credits) after the later of the adoption or effective date of the plan amendment establishing 

the section 401(h) account? [ ] 

III. Separate Accounts 

a. Does the plan provide that the section 401(h) arrangement is a separate account 

established and maintained for such benefits? [ ] 

b. Does the plan provide that in the case of an employee who is a key employee, a 

separate account is established and maintained for benefits payable to such employee 

(and his spouse and dependents) and such benefits (to the extent attributable to plan 

years beginning after March 31, 1984, for which the employee is a key employee) are only 

payable to such employee (and his spouse and dependents) from such separate account? 

[ ] 

c. Does the plan provide that the term “key employee” means any employee, who at any 

time during the plan year or any preceding plan year during which contributions were 

made on behalf of such employee, is or was a key employee as defined in section 416(i)? 

[ ] 

IV. Reasonable and Ascertainable Provisions 

a. Does the plan provide for employer contributions to the medical benefits account that 

are reasonable and ascertainable? [ ] 

Form 13069 (Rev. 9-2006) (page 1) Cat. No. 31858W Department of the Treasury — Internal Revenue Service 
V. Miscellaneous Plan Reference Yes No N/A 

a. Does the plan provide that it is impossible, at any time prior to the satisfaction of all 

liabilities under the plan to provide section 401(h) medical benefits, for any part of the 

corpus or income of such separate account to be (within the taxable year or thereafter) 

used for, or diverted to, any purpose other than the providing of such benefits? [ ] 

b. Does the plan expressly provide that, notwithstanding the provisions of section 

401(a)(2), upon the satisfaction of all liabilities under the plan to provide section 401(h) 

medical benefits, any amount remaining in such separate account must be returned to the 

employer? [ ] 

c. Does the plan expressly provide that in the event an individual’s interest in the medical 

benefits account is forfeited prior to termination of the plan an amount equal to the amount 

of the forfeiture must be applied as soon as possible to reduce employer contributions to 

fund the medical benefits? [ ] 

Comments 

Form 13069 (Rev. 9-2006) (page 2) Cat. No. 31858W Department of the Treasury — Internal Revenue Service