Article Date:
September 2013

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Make Your Section 105 Plan Work in Retirement

Would you like to squeeze additional tax benefits out of your Section 105 medical reimbursement plan?


It’s possible.


Your Section 105 plan design can allow unused medical reimbursement carryovers to future years. Then when your employee-spouse quits, is terminated, dies, or retires, you can continue the medical benefits.


This article explains how.




Before getting to squeezing more out of your Section 105 plan, let’s look at you.


If you report your business income and deductions on your personal income tax return, not on a separate corporate tax return, tax law considers you self-employed. When you are self-employed, you report your income and deductions on Schedule C of your Form 1040.


Because you are self-employed, you are not an employee. Because you are not an employee, you may not have a Section 105 medical plan that covers you directly.1


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