Medical Reimbursement Plan - Section 105

Based on Section 105 of the Internal Revenue Code, a self-employed individual who employs a spouse in the business can become eligible for a medical reimbursement package.
A medical reimbursement plan enables qualified small business owners to deduct 100% of federal, state, and FICA taxes for family medical costs.  Key to these savings is the ability to declare medical expenses as a business expense rather than a personal deduction.

Qualifying medical expenses include:

• All family health insurance premiums including dental and vision (post-tax)


• Qualified long-term care insurance premiums


• All out-of-pocket medical, dental and vision care expenses, including over-the counter expenses


• Cancer insurance premiums


• Term life ($50,000 max) and disability income insurance premiums for employees only