K-1 Partner in HRA?

[KEC79]

Can a partner who receives a k-1 from a partnership participate in an HRA? Partnership is setting up a fertility HRA and would like all employees and partners to be eligible. 

[Dare Johnson]

An HRA can provide tax free benefits to current and former employee and their spouses/dependents.  Owners with the meaning of Code Sec 401(c) are not considered employees for HRA purposes and therefore ineligible to participate.

[Brian Gilmore]

Agreed, here's the cite--

IRS Notice 2002-45:

https://www.irs.gov/pub/irs-drop/n-02-45.pdf

III. Coverage under an HRA

Medical care expense reimbursements under an HRA are excludable under § 105(b) to the extent the reimbursements are provided to the following individuals: current and former employees (including retired employees), their spouses and dependents (as defined in § 152 as modified by the last sentence of § 105(b)), and the spouses and dependents of deceased employees. The term “employee” does not include a self-employed individual as defined in § 401(c). See § 105(g).

[KEC79]

thank you!