You may not be working in retirement, but if you know how to play your cards right, your Section 105 medical-reimbursement plan can keep working for you even after you call it quits.
What’s the catch? There isn’t any but you have to do some planning. Which is where my new article comes in. It will show you how to make sure your Section 105 plan continues providing tax benefits when your employee-spouse quits/retires or, if you operate as a C corporation, you retire.
Want to find out more? Read my new, free article titled Tax Tips: Make Your Section 105 Plan Work in Retirement.
Three ways our fact-filled article can help you:
- You’ll learn tactics you can use if you’re self-employed. Because you’re self-employed you are not an employee. And because you’re not an employee, you can’t have a Section 105 medical plan that covers you directly. Luckily there are two ways to get around this rule… and we know what they are! All will be explained when you read the full article.
- You’ll learn what to do if you quit or retire from your C corporation. This can be tricky. If your corporation ceases to exist, you forfeit the unused Section 105 plan reimbursement. But don’t throw in the towel! If you handle succession planning the right way you can realize unused Section 105 carry-overs and unused sick and vacation pay (as Section 105 medical reimbursements) during retirement. You’ll get all the facts when you read the full article.
- We’ll tell you what to do if your spouse retires, quits, or gets fired. Good news! Section 105 plans can permit deductions for the medical costs of retired and terminated employees. This includes your employee-spouse and her/his family (including you!) under the “continuation rules.” We’ll explain everything when you read the full article.