Recently I was doing some research for a couple different clients about various alternatives regarding paying for (or reimbursing) a closely-held company owner’s health insurance. I was going to write up a short blog post about the proper way to handle these, but there is one already out there written by a colleague that is so well-illustrated and to-the-point that I realized the better approach was to share it with you here.
The most important take-aways:
1) you can’t double-dip; and,
2) though the particular hoops that have to be jumped through are a) different for partnerships than for S-Corps, and b) a PITA for both, they are in fact the law and must be followed.