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HRA established by an S-Corp


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Guest LLandau
Posted

To all you wise benefit pros.....

This is the scenario:

An S-Corp would like to establish an HRA for its employees by funding a trust at the end of a calendar year for the following calendar year. The S-Corp would name itself as the trustee to the trust established for the HRA.

Question: Would the S-Corp.'s contributions to the HRA trust still be tax-deductible :unsure: ?

I can not see any problem with establishing an HRA in this manner but I really need some feedback!

Any suggestions?

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