thepensionmaven Posted July 9, 2019 Posted July 9, 2019 Corp sponsors 401(k) SHM plan, definition of compensation is 415 safe harbor, about 10 participants, including the owner. Box 1 and box 5 of w-2 have different amounts, Code D is $18,500. Accountant not taking into account medical premiums for the 2% + shareholder. Getting conflicting answers, isn't medical a fringe benefit?
Mr Bagwell Posted July 9, 2019 Posted July 9, 2019 If medical is under a section 125 plan, I would say no, medical is not a fringe benefit.
thepensionmaven Posted July 9, 2019 Author Posted July 9, 2019 Company does not have a Section 125 plan.
Luke Bailey Posted July 11, 2019 Posted July 11, 2019 Check out the IRS website here: https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues I believe that this has been the subject of previous discussion on Benefitslink. The amount paid by the company for the 2% or greater shareholder's medical is Box 1 W-2 wages, and so is comp for 401(k) and other qualified plan purposes. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
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