Announcement

Collapse
No announcement yet.

medical reimbursement

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    medical reimbursement

    Client has been sole prop for years. Spouse is employed by client. Client set up medical reimbursement plan for spouse.

    Now the client is beginning to show higher profits and is thinking about becoming an LLC, taxed as an S corp. Can client still have a medical reimbursement plan for spouse? I know that it would apply to all employees of company, but unlikely any others will be hired.Only employees would be self and spouse.

    I wasn't entirely sure of the answer so thought I would check it out.

    Thanks
    Linda

    #2
    Once you cross that S corp line

    Originally posted by oceanlovin'ea View Post
    Client has been sole prop for years. Spouse is employed by client. Client set up medical reimbursement plan for spouse.

    Now the client is beginning to show higher profits and is thinking about becoming an LLC, taxed as an S corp. Can client still have a medical reimbursement plan for spouse? I know that it would apply to all employees of company, but unlikely any others will be hired.Only employees would be self and spouse.

    I wasn't entirely sure of the answer so thought I would check it out.

    Thanks
    Linda
    spouse is related and therefore by extension 2% shareholder. So you know what that
    means.
    ChEAr$,
    Harlan Lunsford, EA n LA

    Comment


      #3
      Originally posted by oceanlovin'ea View Post
      Client has been sole prop for years. Spouse is employed by client. Client set up medical reimbursement plan for spouse.

      Now the client is beginning to show higher profits and is thinking about becoming an LLC, taxed as an S corp. Can client still have a medical reimbursement plan for spouse? I know that it would apply to all employees of company, but unlikely any others will be hired.Only employees would be self and spouse.

      I wasn't entirely sure of the answer so thought I would check it out.

      Thanks
      Linda
      HRA doesn't work for them any more. But how about HSA with high deductible Health ins? At least they would be able to deduct on front of 1040.

      Comment

      Working...
      X