What is a key feature of a 401(h) trust?

A key feature of a 401(h) trust is that it is governed by a specific board of trustees. This structure is critical because the trustees have the fiduciary responsibility to manage the assets of the trust in the best interests of the beneficiaries, which typically includes retired employees who receive health benefits. The requirement for a dedicated board helps ensure that the trust operates according to the rules governing its primary purpose, which is to provide health benefits to retirees, rather than being subject to the direct control of the employer, thereby enhancing the trust's independence.

In contrast, the other options are not defining characteristics of a 401(h) trust. For example, while it does relate to benefits, its purpose is not about pension contribution matching, nor is it strictly governed under specific federal guidelines, although it must comply with relevant legislation. Additionally, stating that it operates independently from employer control is misleading since the establishment and initial funding of the trust are typically managed by the employer, albeit with oversight from the designated trustees. This governance structure is fundamental to its operation and management.