- 7,790
A MERP falls under Sec.105 IRC and is similar to an HRA. Fom the facts given by SamIAm I don't see any advantage to a MERP since their corporation pays the premiums that are deductible by it. I believe MERPs are often used by employers to permit the employees to purchase their own individual health plans. I don't think a MERP is allowed to pay for the copays, etc. It appears to me that Sam's clients are looking for a 100% free ride. If they have high medical expenses they are enteitled to the deduction I mentioned in my previous post. BTW I went back on my meds so I should be able to think more clearly and not misspeak.