Are you looking for a flexible, tax-efficient way to pay medical expenses either for yourself or your employees? A Section 105 Medical Reimbursement Plan may be the solution.
They are reimbursements by an employer of amounts paid by an employee for medicines, drugs purchased by the employee with or without a physician’s prescription excludable from gross income under Section 105(b) of the Internal Revenue Code.
Reimbursements by an employer of amounts paid by an employee for medicines and drugs purchased by the employee without a physician’s prescription are excludable from gross income under § 105(b). However, amounts paid by an employee for dietary supplements that are merely beneficial to the general health of the employee or the employee’s spouse or dependents, are not reimbursable or excludable from gross income under § 105(b).
This IRS-approved benefit allows businesses to reimburse employees for medical expenses, including health insurance premiums, with significant tax advantages.
What’s the benefit?
Who can use it?
Bonus Tip: Hire your spouse legitimately and offer a Section 105 plan that covers your household—creating a legal, tax-efficient way to deduct family medical costs.
Key Requirements
Let’s Talk Strategy!
Our team at Campbell and Company can help you determine if a Section 105 Plan is right for your business, draft the required documentation, and walk you through setup and compliance.
Monica Haberlin, EA
Partner
Contact Us
Spring Hill Office
7211 Hiawatha Pkwy.
Spring Hill, FL 34606
Phone: (352) 683-7365
Odessa/Trinity Office
2400 Merchant Ave.
Odessa, FL 33556
Phone: (727) 364-2633
Inverness Office
2202 Highway 44 W.
Inverness, FL 34452
Phone: (352) 683-7365