mjroberts222

no worries. i've just seen clients do wackily complex stuff thinking it was a good idea and it backfired. ?

probably responding too late here tom, but this probably wouldn't work. i don't do section 125 discrimination testing but you're going to have to worry about failure on this front. additionally, depending on what type of company this is, any medical contributions by the company towards the owner is probably taxable income.

i would advise against running multiple cafeteria plans. everything can be handled under one umbrella. besides, as chaz points out, you still have to deal with discrimination testing across the board. and bingo qdrophile. this reeks of afcrap.

is the non-surviving entity officially dead on 12/31? just wondering if you could let the plan year run out. i typically recommend doing short plan years in situations like these to get everything synched up before officially ending one plan. time would obviously need to be on your side.

you're on the right path. you could have all 3, but what's the goal? one other factor to throw into the decision making process is contributions towards insurance. so if there is a set budget, you would have to weigh each of the following: employer contributions to premiums employer contributions to an hsa employer contributions to an hra