Article Date:
January 2009

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Discriminate with Your 105 Plan

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.

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