S corporation shareholders who own more than 2% of the outstanding stock are eligible for the following tax-free benefits
◦ group term life insurance exclusion under Sec. 79 for premiums paid for up to $50,000 coverage.
◦ exclusion for meals and lodging furnished for the convenience of the employer.
◦ exclusion from income for premiums paid for accident and health and medical reimbursement plans.
◦ None of these.