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A 401(h) pre-tax medical benefit account will not be required for retiring state employees as planned in July. Legislation approved by the General Assembly, and signed by the Governor, makes that program optional.
The Indiana Public Retirement System (INPRS), which administers the program, must gain approval from the Internal Revenue Service (IRS) for the change. If it is not approved, the program cannot be launched, even as an option.
It is likely to take a year or more to receive the IRS opinion.