S corp and cafeteria plan and 2% owner

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  • taxtime
    Member
    • Oct 2006
    • 53

    #1

    S corp and cafeteria plan and 2% owner

    If you have a 2% or greater shareholder who is not eligible to participate and during the year they drop below a 2% ownership, can they participate in the plan for that year after they drop below the 2% level? Thanks for any input.
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