Just Tri Posted February 5, 2020 Posted February 5, 2020 Is the 2% S-Corp. owner health insurance considered a fringe for purposes of 414(s) exclusions? Thanks for any guidance.
Larry Starr Posted February 5, 2020 Posted February 5, 2020 3 hours ago, Just Tri said: Is the 2% S-Corp. owner health insurance considered a fringe for purposes of 414(s) exclusions? Thanks for any guidance. No. Here is a list of some items that are fringe benefits: Examples of taxable fringe benefits include: Bonuses. The value of the personal use of an employer-provided vehicle. Group-term life insurance in excess of $50,000. Vacation expenses. Frequent-flyer miles earned during business use, converted to cash. Amounts paid to employees for relocation in excess of actual expenses.\ You can exclude the S corp taxable health insurance premium specifically, and assuming all who have such income are HCEs and no NHCEs are involved, it will meet the 414(s) definition without any testing. Below Ground 1 Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
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