### Question
How is the term applicable account limit defined?


### Answer
The term **applicable account limit** is defined in *26 U.S.C. § 419A* as the following:

> an account limit for a qualified asset account with respect to medical benefits provided through a plan maintained by a bona fide association (as defined in section 2791(d)(3) of the Public Health Service Act (42 U.S.C. 300gg–91(d)(3)).[1](#419A_1_target)


#### (d) Requirement of separate accounts for post-retirement medical or life insurance benefits provided to key employees


#### (1) In general


In the case of any employee who is a key employee—


(A) a separate account shall be established for any medical benefits or life insurance benefits provided with respect to such employee after retirement, and


(B) medical benefits and life insurance benefits provided with respect to such employee after retirement may only be paid from such separate account

#### Citation:
  - *26 U.S.C. § 419A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart D-Treatment of Welfare Benefit Funds**

