Discussion:Medical expenses for fertility treatment

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Discussion Forum Index --> Tax Questions --> Medical expenses for fertility treatment

WIaccountant (talk|edits) said:

18 May 2007
I have a client who provides health insurance to their employees but the health insurance does not cover infertility treatment which one of the employees needs. They would like to compensate her $10,000 for her Invitro treatment.

1. Can the employer pay directly to the clinic or doctors and consider this as a business expense or does this have to be included as compensation to the employee on her w2?

2. If they give her $10K for this treatment, are they required to compensate other employees equally?

Thanks everyone

Jdugancpa (talk|edits) said:

18 May 2007
1. Unless the client establishes a self-insured medical plan (which must be nondiscriminatory), the payment to the clinic will be consider comp to the ee.

2. No, if it is comp, it may be done on discretionary basis, just like a bonus.

JAD (talk|edits) said:

18 May 2007
But perhaps we can go back to the 105 plan to accomplish the goals. Can the plan be limited to cover only this type of treatment? Or set up the plan, reimburse the employee, then terminate the plan? Just a thought.

Jd, thanks for your support on that other thread.

Riley2 (talk|edits) said:

18 May 2007
I see no problem with this providing benefit as a tax-free fringe benefit as long as the employee in question is not an HCE (Highly Compensated Employee) as defined in Sec. 105(h)(5). If the employee is an HCE, then the employer would need to offer this benefit to all of its employees to avoid taxation of the fringe.

related discussions: in vitro

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