Business Tax Strategy · ProfitGuard Plus
What happens if
the IRS looks at it?
You show them the plan. A compliant plan is built to be looked at. ProfitGuard Plus has written plan documents, reimburses only medical care under Section 213(d), runs reimbursements through the SIMRP and never the cafeteria plan, and keeps a payroll audit trail from the first mock payroll on.
Quick answer
- There are written plan documents, reviewed by CPAs and ERISA attorneys, and your CPA has read them.
- Every reimbursed benefit is medical care under Section 213(d). Nothing that is not.
- Reimbursements flow under the SIMRP plan document, per Treasury Regulation 1.105-11(i), never back through the Section 125 plan.
- There is a payroll audit trail from day one: the mock payroll, the payroll integration, and every payroll since.
- The plan is paired with a real ACA medical plan, so it is an integrated Section 105 plan.
- The IRS memoranda addressed specific designs, activity rewards and reimbursements through the cafeteria plan. This plan is built to avoid both.
What a compliant plan can show
The plan documents. The list of benefits, every one of them medical care under Section 213(d). The SIMRP plan document that governs reimbursement. The payroll records, starting with the mock payroll. A plan that has these is not hiding anything, because there is nothing to hide.
What the IRS actually addressed
Office of Chief Counsel Memorandum 201703013 and the memoranda before it dealt with specific designs: plans that paid employees for activities, plans that reimbursed through the cafeteria plan itself, and flex credits that handed back more after tax than went in before. Those are the designs that failed. The rules, the three failures, and a checklist for any plan you are already in are on the plan compliance page.
Ask this before you sign with anyone
Can I see the plan documents? Can my CPA? Is every benefit medical care under 213(d)? Does the reimbursement run through the cafeteria plan? We put the questions in two short sheets you can take to any provider: the seven questions before you sign and LINK:/guides/profitguard-plus/10-red-flags.pdf:the ten red flags.
Frequently asked questions
Has the IRS shut down plans like this?
It has addressed specific designs: activity rewards, reimbursements sent back through the cafeteria plan, and flex credits. It has never ruled the structure itself illegal. ProfitGuard Plus is built to avoid every design the memoranda named.
What documents exist?
Written plan documents for the Section 125 plan and the SIMRP, the list of covered benefits, and the payroll records from the mock payroll forward.
Who reviewed the plan documents?
CPAs and ERISA attorneys, before the plan goes live. Your own CPA is expected to review them as well.
Will my CPA be able to check it?
Yes. That is the point of written plan documents. We loop your CPA in early and answer their questions directly.
What is the audit trail?
The mock payroll, the payroll integration, and every payroll run since. The numbers are recorded as they happen, in your payroll system.
This is education, not tax or legal advice. Actual savings vary by payroll structure, participation, and state and local tax. Talk to your CPA about your specifics before you decide. ProfitGuard Plus is a marketing name for a structure built on IRS code sections 125, 106(a), 105, and 213(d).
See your ProfitGuard Plus number
Enter your W-2 headcount and see the combined value first. Then we'll run your exact numbers. You can also read the full walkthrough on the ProfitGuard Plus page or call +1 (586) 899-1003.
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