Partnerships and S-Corp with Cafeteria Plans

[jala]

I admit that I have not kept up very well with the attribution rules when it comes to LLC, Partnerships, S-Corps and Sole Proprietors.

Are the attribution rules still the same under Code Section 318?

LLC members, greater than 2% Shareholders of an S-Corp and Sole Proprietors still cannot participate in a Cafeteria plan, correct?

Are the spouse, children, grandchildren and parents also unable to participate in the Cafeteria plan as well?

From the information that I have researched, it appears that they are all excluded from participation.

Can someone please confirm this for me?

Thank You

[Guest morris]

Your list of individuals that can't participate in a 125 plan is correct, except add partners in a partnership. Basically--anyone "self employed".

If I'm not mistaken, only 2% or more S corp owners cannot have their children, parents, spouse, grandparents, etc in the plan.