Section 105 Health Reimbursement Arrangements
We currently offer two Section 105 Health Reimbursement Arrangements:
BizPlanNOW- for small businesses
AgriPlanNOW- for agiricultural farmers
Both plans are medical reimbursement programs that enable small business owners to deduct 100% (in federal, state, and self-employment taxes) for family medical expenses including:
- All family health insurance premiums including dental & vision (post-tax)
- Qualified long-term care insurance premiums
- All out-of-pocket medical, dental and vision care expenses, including over-the-counter supplies and insulin
- Cancer insurance premiums
- Term life ($50,000 max) and disability income insurance premiums for employers only
Does My Business Qualify?
Based on Section 105 of the Internal Revenue Code, a small business owner who can demostrate employable interest in the business can become eligible for an employee benefits program. All business filing types are eligible, including sole proprietors, partnerships, C- and S- corporations.
With BizPlanNOW an independent sales agent, a trucker, a retail shop owner, or any other small business owner can legall deduct 100% of family medical expenses. This includes all health and qualified long-term care insurance premiums, as well as out-of-pocket medical, dental, and vision costs.
If you are a family farmer and are able to hire your spouse as an employee of your business, AgriPlanNOW can help you and your family save thousands of dollars each year.
The bottom line? Real savings on medical expenses in excess of $4,000 a year! Each year, BigPlanNOW and AgriPlanNOW clients average $4,000 or more in savings. Key to these savings is the ability to declare medical expenses as a business expense rather than a personal deduction. Both BizPlanNOW and AgriPlanNOW are not insurance and the programs require no purchase of additional insurance or changing existing coverage. We simply work with you to lower the cost of your health care premiums and out-of-pocket medical expenses by 30% or more a year!
BizPlanNOW and AgriPlanNOW's Unparalleled Advantages
- Money Back Guarantee and industry exclusive Audit Guarantee.
- Complete compliance with IRS, DOL, and ERISA changing regulations.
- Exclusive TASC Card making reimbursement of eligible medical expenses as easy as a swipe of a debit card.
- Ability to Carry Over any available unused medical reimbursements to the next Plan year.
- Consumer healthcare savings services.
- Employer-sponsored Benefit W-2 Calculation.
- Wage Payment & Tax Reporting feature for basic payroll requirements.
- ERISA and PPACA Notifications.
- Deductible medical expense guidance.
- Healthcare Reform tools, services and education.
- Tax-advantage program optimization support services.
How Does BigPlanNOW and AgriPlanNOW Work?
Jim owns his own business. Jim's wife Mary provides a valuable service to the business by keeping the books, sending out invoices, and filing. Jim decides to formally employ Mary and take advantage of the BigPlanNOW or AgriPlanNOW tax savings. When establishing a compensation package for Mary, Jim evaluates her experience and the vital role she plays in the business. Jim agrees to compensate Mary $14,000 per year. He pays the compensation as shown below:
The $12,000 of reimbursed medical costs may now be deducted at 100 percent as an employee benefit expense. Jim multiples the $12,000 by a 15% federal tax, a 5% state tax and a 15.3% self-employment tax. The result: Mary's compensation in benefits and wasge has resulted in a tax savings of $4,200 this year!
Note: If Jim's business were a corporation, he would be the employee and a similar tax savings plan could be established without hiring Mary.
