Third Party Administrator | FSA | HSA | HRA| » eligible individuals http://www.mythirdpartyadministrator.com myThirdPartyAdministrator Thu, 03 Mar 2011 16:56:38 +0000 en hourly 1 http://wordpress.org/?v= Who can sponsor a cafeteria plan? http://www.mythirdpartyadministrator.com/who-can-sponsor-a-cafeteria-plan/ http://www.mythirdpartyadministrator.com/who-can-sponsor-a-cafeteria-plan/#comments Sat, 02 May 2009 14:52:13 +0000 admin http://schrolucke.com/workblog/?p=15 277152_94491Virtually any company can sponsor a cafeteria plan for its employees, regardless of size. Eligible companies include:

  • “S” or “C” Corporations
  • Partnerships
  • Non-Profit Organizations
  • Government Entities
  • Limited Liability Companies (LLC)
  • Limited Partnerships (LLP)
  • Sole Proprietorships

There are some IRS restrictions on who is eligible to participate in the plan, however. Only employees of the plan sponsor (company) can participate.Non-eligible individuals include:

  • Self-Employed Individuals
  • Partners
  • A “More-Than-2%” Shareholder in an “S” Corporation
  • Owners of “C” Corporations, unless they elect no more than 25% of total plan contributions
  • Members of an LLC
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