If one spouse has health insurance through their employer, can the other spouse that is self employed set up a medical reimbursement plan to cover deductibles, etc.?
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Medical reimb. Plan
Question: Is the spouse that is self employed eligible to participate in the group plan at the other spouse employer? -
I will have to check. If he can participate in his wifes plan does that mean he can not set up his own?Comment
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Medical reimbursement
The wife must also be an employee of husband's business to get reimbursed for medical expenses.
That would be the qualifying point - it is a reimbursement plan for employees. If he had other employees, he would have to offer the same for them.
Linda FComment
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She currently does the bookkeeping so making her an employee would not be a problem but I am guessing if she is covered under another plan she would not qualify. Is that correct? I think her current employer provides her with benefits but she has to pay for family coverage.Originally posted by Linda F
We have also been toying with the idea of converting his business to an S Corp. Would we still be able to provide her with the benefit (BTW - there are no other employees) if she is not an owner? They have also considered having her quite her current job and working full time for the company. Would this change the results?
Thanks for everyones help.Comment
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reimbursement
I don't think it matters if she is covered by a plan. The medical reimbursement plan states that the owner will reimburse his employee(s) for any out of the pocket medical expenses they have.
It would include the premium they have to pay, any copays, prescriptions, whatever you want to include that you would be willing to reimburse employee for.
An S corp is different. The self-employed person would be an employee of the corporation. The medical reimbursement plan is not available for s corps. Someone can correct me if I am wrong on that.
Linda FComment
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