Discussion:Single Shareholder/Employee Flexible Spending Account

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Discussion Forum Index --> Consumer Questions --> Single Shareholder/Employee Flexible Spending Account

Jc (talk|edits) said:

10 March 2007
Any rules on the books to prevent me from starting a Flexible Spending Account for my single shareholder/employee S corp? S corp pays health insurance premiums and reports as wages already, but I have a ton of out of pocket medical expenses that I'd like to deduct.

If I can start one, can I start one ASAP or do I have to wait until '08?

Thanks

Sandysea (talk|edits) said:

10 March 2007
YES rules; no you can't....

Riley2 (talk|edits) said:

10 March 2007
You can have an FSA in an S corporation as long as it is not in a cafeteria or Sec. 125 plan, and the benefits are restricted to those benefits which are available to S corporation shareholders (e.g. Sec. 129 benefits).

Sandysea (talk|edits) said:

10 March 2007
Sorry; yes as Riley stated...I was sooo thinking of cafeteria plan....

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