Guest Darla K Posted June 25, 2002 Posted June 25, 2002 Can the owner of a Sub S Corp particpate in a Flexible Spending Account?
Guest sec125 Posted June 25, 2002 Posted June 25, 2002 According to IRS Pub. 15-B, 2% or more shareholders in a "S" corporation can't be considered an employee and can't participate.
Guest Darla K Posted June 25, 2002 Posted June 25, 2002 I understand that, but I had some information handed to me saying that the laws changed with egtra and sub s owners can now participate effective January 1, 2002. I was wondering if anyone has any further information regarding the law change.
Guest AHayhow Posted July 9, 2002 Posted July 9, 2002 What about "contract" partners in an LLP. They receive 1099s from the firm rather than K1s, but they actually work out of the law office. Can they participate? They are in the medical plan.
GBurns Posted July 9, 2002 Posted July 9, 2002 Would you please share this info that you received? I have seen recent plans designed and in use in law firms (partnerships and LLPS) that utilize the changes to 104(a)(3) etc made by HIPAA Section 311 to accomplish this. I have also heard and read somewhere of an additional changes elsewhere under SBJPA that are useable. Some guidance appears in PLR 20007025. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
SLuskin Posted July 19, 2002 Posted July 19, 2002 GBurns, could you clarify your response a little? Sometimes I do better with an explanation written in sentences rather than cite references. Thanks.
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