June 19, 2009
Question of the Week: Can a Partner Participate in an FSA?
Filed under: News
Vision Payroll

This week’s question comes from Mark, a partner in a partnership. I’ve just been made a partner in a partnership. As an employee, I was participating in the company’s Flexible Spending Arrangement (FSA) plan. I’ve been told I can no longer participate. Can a partner participate in an FSA? Answer: FSAs, sometimes called “Flexible Spending Accounts”, are generally setup for reimbursement of medical or dependent care expenses. Partners in a partnership (including LLCs and other similar entities that have elected to be treated as a partnership for tax purposes) are considered self-employed individuals. As such, they are not eligible to participate in an FSA sponsored by the partnership in which they are a partner. Contact Vision Payroll if you have further questions on FSA eligibility.


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