Home > FAQ > Compliance > Frequently Asked Questions

Can a 2 percent S-Corp shareholder participate in a cafeteria plan?

No, a 2 percent S-Corp shareholder is not considered an employee and would therefore not be permitted to make pre-tax contributions under a cafeteria plan. The same would apply to a sole proprietor and partners in a partnership.

Last update on September, 13 2013 by Elizabeth Bonney.

< Go back