Follow up to 8/7/00 question relative to children of self employed ind

[Guest dcranage]

Follow up to 8/7/00 posting on medical expense reimbursement account covering children of self employed individual. Sole proprietor's children are employees of business. Owner's spouse is not employed by business. Can children participate in employer funded medical expense reimbursement plan? That is, contributions would be made for them reimbursing their medical expenses for eye care, dental, etc.

Would the answer be different if funding is via salary reduction? Would either result in ownership attribution to children, resulting in them from being able to participate?