Is S-Corp 2% Shareholder ineligible in related C-Corp cafeteria plan?

[Guest John Stoffel]

There are two companies: A C-Corp with two owners and an S-Corp with the same two owners. Both owners are 2% shareholders in the S-Corp as well as employees in the C-Corp.

1. Can either owner participate in the C-Corp cafeteria plan if the companies have seperate plans?

2. Can either owner participate in the cafeteria plan if the two companies jointly sponsor a cafeteria plan?

Thanks.