Skip to main content

Command Palette

Search for a command to run...

DRAFT — pending professional review

NOT LEGAL OR TAX ADVICE. This module is reference material for the HigherSelf Network cohort. Pending Lumina tone review, outside-CPA review, ERISA-counsel review for any Solo 401(k) or ROBS section, and Grace Fields authorization before external publication. Cohort-facing facts use anonymized framing until written consent is on file.

All strategies

tax favored transfer strategy

Accountable Plan reimbursement

Treas. Reg. § 1.62-2; IRC § 62(a)(2)(A)

Eligibility

Best when
S-corp or C-corp owner-employee paying out of pocket for home office, mileage, cell phone, internet, professional dues, equipment.
Do not use when
Sole proprietor / Schedule C — take expenses directly as deductions instead.

Mechanics

Three required tests
  • Business connection (deductible under § 162)
  • Substantiation within reasonable time (60-day safe harbor)
  • Return of excess within reasonable time (120-day safe harbor)

Documentation

  • Written plan document
  • Expense report template
  • Substantiation evidence
  • Reimbursement runs through payroll system as non-wage

Applies to

HigherSelf NetworkA.M. ConsultingThe 7 Space

Interacts with

S-corp election (Form 2553)§ 199A Qualified Business Income deduction
Research only — not legal or tax advice