The Best Health Insurance Plan for Solo Owners

September 1st, 2015 at 12:01 PM

Did you know that a C Corporation with one employee is exempt from the Affordable Care Act (ACA)? Yes, the C Corporation can reimburse the owner-employee for the cost of his or her health insurance.

However, there is a better plan!! The corporation can install a health reimbursement account such as a Section 105 medical reimbursement plan, and that plan can cover additional medical costs not covered by insurance, such as co-pays,deductibles, dental, vision, etc.

And a further benefit of this Section 105 plan, the Corporation can cover the entire family including children under the age of 27–therefore, in some cases making all the family medical expenses deductions for the C Corporation!

This deduction is reflection on Line 24, employee benefit programs on the corporation’s tax return.