Core Documents Reduces the Price of the One-Person Section 105 Health Reimbursement Arrangements HRA Plan Document from $164 to $149 one-time fee
Bradenton, FL (PRWEB) December 31, 2014 -- Core Documents, the nations premier provider of affordable Section 125 Cafeteria and HRA plan documents has reduced the one-time charge for their one-person Section 105 HRA Plan Document from $164 to just $149 for the PDF email version.
Section 105 of the Internal Revenue Code permits a self-employed person to set up a health reimbursement arrangement (HRA) for tax-free repayment of major qualified medical expenses not covered under a health plan. Alternately, that self-employed individual may hire a salaried employee (read: his/her spouse) and offer that employee an HRA. If the latter choice is made, the benefits offered will not only cover the employee, but also his/her spouse and dependents. So if the new hire is the business owner’s spouse, what results is effectively a family healthcare expense account.
Most sole proprietors need to hire someone to get this perk. But, it is possible to set up a Section 105 plan without hiring an employee if your business is a C-corp, an S-corp, or an LLC that files its federal tax return as a corporation. In a corporate structure, the corporation is defined as the employer and the business owner is defined as a salaried employee.
The good news is the Affordable Care Act (Obamacare) didn't change the one-person Section 105 options the way it did for 2+ employee HRA plans. When the IRS issued Notice 2013-54 as a follow-up to the Affordable Care Act, most 2+ employee businesses lost the chance to offer a discrete comprehensive medical reimbursement plan. One-employee HRAs are still allowed under Section 105 using group or individual insurance coverage.
Read more: Section 105 Plans - How Microbusinesses Save $5,000 a Year in Taxes
and, Can Business Owners Reimburse Themselves Tax-Free for Health Insurance?
Core Documents has been providing Section 105 HRA plans for small one-person businesses since 1997. See more information about these fringe benefit plans at Core Documents’ website: http://www.coredocuments.com, or call toll free 1-888-755-3373.
Gene C. Ennis, Core Documents, Inc., http://www.coredocuments.com, +1 (888) 755-3373, [email protected]
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