Regardless of whether you operate as a sole proprietor, partnership, or corporation,
every business entity qualifies to establish an HRA 105 plan. However, it is important
to understand that only employees as defined by IRS rules qualify to participate.
If you are operating as a corporation and receiving wages, you are an employee and
qualify under the HRA rules to participate. If you are a sole proprietor owner or
a partner owner of a business you personally might not qualify, but that doesn’t
mean that you might not be able to benefit from an HRA plan. If you are a sole proprietor
or partner and are married, you might be able to be covered under an HRA plan as
a dependent of your spouse.
To make the eligibility question a little easier, the NASE has set-up an Eligibility
Quiz to lead you through the process of determining if an HRA plan is going to be
an opportunity for you to save hundreds or even thousands of tax dollars.
Do You Have Employees? If you have employees it’s
important to understand that you cannot discriminate, and if you establish an HRA plan
the business may be required to provide HRA benefits to those employees. Please
contact the NASE HRA consultants at 888-650-6273 to discuss the employee issue or
any other questions that you might have.
To begin, select your tax entity below.