Sec 105 MERP

Feb 15, 2008

  1. bluemarlin08
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    bluemarlin08 Guru

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    Do any of you have a sec 105 medical expense plan in your business? I thought it was only available to Corp, but have discovered self employed non corp can adopt.
     
  2. somarco
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    somarco GA Medicare Expert

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    I haven't looked at this in a while, but the "old" rules were you could have a MERP as long as you 1)had at least one non-related employee (who was also covered under the plan . . . non-discrimination rules apply) or 2) had a non-owner spouse who was working in the business with you.

    Again, the "old" rules allowed the owner to be included as a dependent of the working, non-owner spouse.

    These rules may have changed so don't quote me.

    I have had a MERP for years, but my agency operates as a C corp. I still use it to cover unreimbursed medical expenses.
     
    somarco, Feb 15, 2008
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