Sect. 125 Plan?

brody1 · #1 Sep 20, 2007, 10:22 AM

My wife and I run a small home based business (LLC).
We take weekly draws from the business.
We have a Blue Cross/BS company insurance policy with high deductibles.
Can we have a Sect. 125 plan where ALL out of pocket medical expenses can be deductible? If not, what is the best method to be able to deduct ALL medical expenses?

jef1056 · Sep 20, 2007, 10:57 AM

Quote:

Originally Posted by brody1

My wife and I run a small home based business (LLC).
We take weekly draws from the business.
We have a Blue Cross/BS company insurance policy with high deductibles.
Can we have a Sect. 125 plan where ALL out of pocket medical expenses can be deductible? If not, what is the best method to be able to deduct ALL medical expenses?

There are tax issues with owner operated businesses and 125 plans.
Look Into a HSA plan. Marries a high deductible health insurance plan with a tax free savings account.



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