Guest Thornton Posted April 7, 1999 Posted April 7, 1999 If a C-Corp or LLC taxed as a C-Corp has only one employee (a HCE), can the company set up a Health FSA? While on the surface it seems ok, I remember reading somewhere that since the HCE was getting 100% of the benefits, the plan failed discrimination. Thanks.
Lisa Hand Posted April 9, 1999 Posted April 9, 1999 Key employees (shareholders/owners) may not account for more than 25% of the plan - Section 125(B)(2)
Guest Thornton Posted April 9, 1999 Posted April 9, 1999 Lisa, what if the sole employee is the owner and HCE? Could he or she get all the benefits?
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now