Benefits
Eligible businesses save an average of more than $2,450 per year on their taxes. This is possible because:

• Health insurance premiums are fully deductible as an employee fringe benefit on your business tax return as compared to the deduction for self-employed health insurance allowed on page 1 of Form 1040.
• Typically, out of pocket medical expenses are included as an itemized deduction only when they exceed 7.5% of your Adjusted Gross Income. By deducting the medical expenses on your Schedule F, this limitation no longer applies.
• Deducting these amounts as employee fringe benefits on your Schedule F also decreases self-employment tax.

Background
Internal Revenue Code (Section 105) allows certain businesses to deduct 100 percent of their family health insurance premiums and out-of-pocket medical, vision, and dental expenses not covered by insurance. The IRS specifies the documentation that is required to administer a Section 105 Medical Reimbursement Plan.

Eligibility
We call our Section 105 Medical Reimbursement Plans, AgriPlan.

To qualify for AgriPlan, you must be able to legitimately employ your spouse. You must provide your employed-spouse with a compensation package that includes a reasonable wage for business duties and a benefit package that includes reimbursement of health care expenses. These expenses are now a business expense and are fully deductible.

AgriPlan is available for most sole proprietors, partners and Limited Liability Company owners. Corporations may also furnish this fringe benefit to employees, even a one-shareholder employee.

Getting Started
You can start any time during the tax year and still receive a full year's savings.

Since medical reimbursement plans require strict compliance with the Department of Labor, IRS and ERISA guidelines we have enlisted the services of Total Administrative Services Corporation (TASC), a third party plan administrator, to assist with compliance. TASC will assist you with enrollment and provides a full Audit Guarantee.

Contact your local office today or E-mail us to start minimizing your taxes.

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