Which of the following is INELIGIBLE to participate in a Section 125 plan?

An S-Corp Owner with a greater than 2% share is INELIGIBLE to participate in a Section 125 plan.

Which of the following is INELIGIBLE to participate in a Section 125 plan?

A. Key Employee in a C-Corp
B. Highly Compensated Employee in an S-Corp
C. A C-Corp Owner with a greater than 2% share
D. An S-Corp Owner with a greater than 2% share

Correct answer is option D. An S-Corp Owner with a greater than 2% share. Explanation: An S-Corp Owner with a greater than 2% share is INELIGIBLE to participate in a Section 125 plan.

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