Okay, so let's say I am a one member LLC, and I have one employee. I want to create an FSA DCAP and the FSA healthcare account for the one employee. The employee gets health insurance elsewhere, so all we need is the FSA DCAP and the healthcare fsa. The dcap and health fsa will be the only benefits available. What's the best way to do this? I am a newbie at this. Both of those accounts will be 100% employer funded (by me), is that legal? As in, the employee will receive the same pay as they're currently receiving, and plus I will 100% fund both FSA accounts.
So here are my newbie questions:
1. Does there need to be some kind of "plan document", even if there's just one employee?
2. How do you open these accounts? Do you go to some bank and ask them to open an FSA account? I called a few banks, and they didn't even know what "FSA" was.
