Are c-corp owners (more than 50% to 100%, i.e., majority owners) ineligible to participate in cafeteria plans and healthcare reimbursement arrangements (HRAs)? What types of special considerations need to be looked at and addressed in order for them to be allowed to participate?

I somehow got the notion that more than 5% owners of c-corps were ineligible to participate in these types of arrangements. Are they ineligible, or is it just difficult to have them pass all of the necessary nondiscrimination testing?

Also, what kinds of implications does participation of a c-corp owner in a caf or HRA plan have for small employers?

Any guidance on this subject would be greatly appreciated.

They are eligible to participate. The issue/concern you should have is focused on testing. Smaller employers tend to have more difficulty in passing the tests.