namealreadyinuse
May 25 2006, 04:08 PM
Partner's can't participate in a premium only plan, but don't they get to exclude the premiums on their returns? If so, that sounds like a wash. What am I missing?
mjb
May 25 2006, 04:16 PM
the Partner's premiums are subject to SECA tax (2X the FICA/medicare tax, or 2X the medicare tax if net earnings are in excess of 94K). Employee contributions to a 125 plan are exempt from FICA tax.