Do you want your Section 105 medical reimbursement plan to provide maximum benefits to you and your family and none to your employees? If so, you need to make a discrimination plan allowed by both tax law and ERISA.
The Section 105 medical reimbursement plan allows the sole proprietor or single-member limited liability company (LLC) to cover an employee-spouse with a Section 105 family medical reimbursement plan. You, the owner, can’t accomplish this benefit for yourself without either hiring your spouse or creating a C corporation.
If you are single, you can obtain the benefits of the 105 plan for yourself by doing business as a C corporation. You need to know the discrimination rules, however, so you can cover yourself with a Section 105 plan that discriminates against your other employees.
Similarly, if you are married and not able or willing to hire your ... Log in to view full article.