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the participant has notice or knowledge of the plan. Wigutow v.
Commissioner, T.C. Memo. 1983-620.
In the instant cases, a plan (as defined in section
1.105-5(a), Income Tax Regs.) existed. Dreyer Farms adopted a
written medical reimbursement plan identifying who was eligible
to participate, what expenses would be reimbursed, and how
participants were to make claims for reimbursement. The plan was
adopted at the first meeting of the board of directors.
Mr. Weeldreyer had knowledge of the medical reimbursement
plan as well as the health insurance policy. Moreover, there is
no doubt that the medical reimbursements provided under the
written plan were intended to complement benefits provided by
health insurance. Thus, the corporation’s medical plan included
health insurance as well as the medical reimbursements. And
finally, we are satisfied that the corporation’s medical plan was
for Mr. Weeldreyer’s benefit as an employee of Dreyer Farms, and
not for his benefit as one of the corporation’s shareholders.
Plans limited to employees who are also shareholders are not
per se disqualified under section 105(b). Larkin v.
Commissioner, supra at 635 n.5. In this regard, we have
sustained plans for corporate officers who were also shareholders
because those officers had central management roles in conducting
the business of the corporation. Wigutow v. Commissioner, supra;
Epstein v. Commissioner, T.C. Memo. 1972-53; Seidel v.
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