Explanation of 419e Plans

The 419e plan is a type of benefit plan that can be provided by an employer. This type of plan is designed to allow employers to provide welfare benefits to their employees. The employer can purchase various insurance plans for their employees that will cover them in different circumstances.

Some of the most common benefits provided through this type of plan are sickness coverage, disability coverage and accident coverage. Some plans provide additional coverage for unemployment benefits as well as life insurance.

This type of plan can be very attractive for employers. First of all, it helps them attract and retain some of the best employees in the industry. Typically, the best employees want a comprehensive benefits package, and this is generally part of one of those packages. 

In addition to that, these plans allow the employer to make tax-deductible contributions to them. If they are set up correctly, the money that is used to pay for these benefits by the employer is tax-deductible. This works under the same principle as a 401k or a flexible spending account for an employer. This means that an employer can significantly reduce their taxable income and help out their employees at the same time.