Save Your Self-Employed Clients Thousands with Section 105 Medical Reimbursement Plans

Course Description

It’s common knowledge that self-employed individuals do not realize some of the same tax advantages as large corporate employees. They certainly miss out on considerable savings with respect to the treatment of health-care costs.

• Definition and comparison of fringe benefits, including Section 105 Health Reimbursement Accounts (HRAs), Health Savings Accounts (HSAs), and Flexible Spending Arrangements (FSAs).
• Tax savings comparisons with and without Section 105.
• Basic concept of, and how to comply with, IRS Sections 79, 106, and 162; Revenue Ruling 71-588; and Letter Ruling 9409006.
• Benefits covered and eligible expenses under Section 105.
• Definition of who qualifies for an HRA.
• Steps necessary to establish legitimate employment, a plan, payroll, and reimbursement of expenses for Section 105 medical reimbursement.
• Definition and example of how to set reasonable compensation to ensure compliance.
• Filing status Section 105 eligibility and tax treatment of sole proprietorships, partnerships, LLCs, S-corporations, and C-corporations.
• Definition of who qualifies for an HSA.
• 2009 HSA limits and regulations.
• Comparison of tax treatment of HRA versus HSA.
• Benefits of combining an HSA with an HRA.
• Tax savings comparisons of combining an HSA with an HRA or with an HSA only.
• Flexible spending arrangement definition, benefits, and tax savings comparisons.

Learning Objectives

Upon successful completion of this course, participants will be able to:

• Identify which of their clients will qualify for a Section 105 medical reimbursement package.
• Understand which expenses are eligible for reimbursement under Section 105.
• Determine a reasonable compensation package for a client's spouse.
• Understand the steps necessary to comply with IRS regulations in Section 105.
• Describe tax treatment of sole proprietorships, partnerships, LLCs, S-corporations, and C-corporations in regard to Section 105.
• Identify which of their clients will qualify and meet 2009 HSA regulations and limits.
• Compare the benefits of combining an HSA with a HRA.

Schedule

For registration information, please contact our office at (800) 822-4194.

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