For Professional Corporations & owner operated businesses without arms length (non-related) employees.
Stated annual limits should not exceed 10% of an employee’s earned income as a general rule of “reasonableness”. 12 month carry forward of unused credits may be applied.
Plan start dates will not be backdated although previously incurred claims/expenses may be brought forward to be included in the plans initial fiscal year (not applicable for Health Spending Accounts).
Plans usually run based on a corporate fiscal year end. Contact us for details of account set up and limits.