Guest John Nelson Posted March 11, 2000 Posted March 11, 2000 Can "members" of an LLC participate in a 125 Plan? I'm told (in the present case) that although the LLC in question has elected to be taxed as a partnership, the members receive W-2s. In my mind, if the members receive W-2s, then they're employees and should be able to participate. Can someone set me straight? Thanks.
Guest msearle Posted March 14, 2000 Posted March 14, 2000 It's my understanding that just because you receive a W2 doesn't automatically allow you to participate in a cafeteria plan e.g., 5% or more share holder in a sub chapter s corporation cannot participate in a plan. I don't beleive that LLC owners can, but I beleive their employees can. ------------------
Lisa Hand Posted June 3, 2000 Posted June 3, 2000 While reviewing previous postings for a response to another one, I noted an error in this one. It is greater than 2% shareholders in an S Corp that can not participate in the 125 Plan.
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