My CPA told me that I have to pay my wife a wage if I want to cover her with the section 105 plan. Is this true? (G.S., Burnsville, MN)

No. In fact, this confuses many people. We did an article on the “no wages” part of the section 105 plan in the May 2006 issue of Tax Reduction Letter (Vol. 15, No. 5), page 5. In this article, we discussed the Speltz case,1 in which Maureen ... Log in to view full article.