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PEO participation by S Corp owners


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Guest Jeff Carone
Posted

Can the owner of a company that is an S corporation that uses a PEO for his employees participate in the PEO's section 125 Plan?

Posted

Greater than 2% shareholders of S corporations are not permitted to participate in Section 125 Plans.

Guest Jeff Carone
Posted

I thought the owner of the S corp would become a PEO employee and thus be eligible for the 125 plan.

Posted

Doesn't the answer depend on whose 125 plan it is. If it is the PEO's plan, then the "owner" could participate, couldn't she??

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