Identifying Section 125 eligible expenses is crucial for employees to choose the benefit that fits their needs and preferences. It allows employees to choose benefits that offer maximum pre-tax deductions. Apart from this, employees must know about the cafeteria 125 plan qualifying events to alter or change their plan when the situation demands it.
Understanding these two components of the Section 125 cafeteria plan helps employees make firm decisions. Furthermore, employees must explore Revive by Health Sphere to understand what they are missing with a traditional Section 125 plan.
Exploring Section 125 Cafeteria Plan
The Section 125 cafeteria plan is a tax-advantaged benefits arrangement that allows employees to choose from a variety of pre-approved options suited to their individual needs. Through salary reductions, participants can allocate pre-tax earnings toward eligible expenses, promoting smarter financial planning.
These plans offer flexibility in selecting healthcare, insurance, and dependent care benefits. By aligning financial incentives with personal well-being, the cafeteria plan serves as a valuable tool in modern employee benefit strategy.
Section 125 Eligible Expenses
Section 125 plans allow participants to use pre-tax income for specific qualified costs, making benefits more affordable. Knowing Section 125 eligible expenses helps maximize the plan’s value while ensuring proper usage and compliance with IRS guidelines. Key Section 125 eligible expenses include:
- Doctor visit co-pays and deductibles
- Dental cleanings and treatments
- Vision exams and corrective lenses
- Childcare and after-school program fees
- Prescription drugs and certain OTC items
- Medical supplies like bandages and braces
- Chiropractic and acupuncture services
- Hearing aids and batteries
Cafeteria 125 Plan Qualifying Events
Cafeteria 125 Plans allow changes outside the usual enrollment period only when specific qualifying events occur. These life changes must meet IRS guidelines and can significantly impact benefit choices, making it essential to recognize and respond to them promptly. Here is the list of cafeteria 125 plan qualifying events:
- Marriage or divorce
- Birth or adoption of a child
- Death of a spouse or dependent
- Employment status change (e.g., job loss or new job)
- Spouse’s benefit plan change
- Significant cost or coverage change in the current plan
- Dependent’s eligibility change
- Court-ordered coverage requirements
Revive: Leveraging the Benefits of Cafeteria Plan with PCMP and SIMERP
Revive is a comprehensive benefits solution that enhances the traditional IRS Section 125 cafeteria plan by integrating two powerful components:
- Preventative Care Management Plan (PCMP) and
- Self-Insured Medical Expenses Reimbursement Plan (SIMERP).
PCMP focuses on proactive wellness, encouraging regular screenings and health check-ups to reduce long-term medical costs and improve employee health outcomes. SIMERP allows for the reimbursement of qualified out-of-pocket medical expenses, creating additional pre-tax savings for employees. Together, these elements make Revive a transformative approach to benefits management, lowering employer tax burdens and increasing employee take-home pay.
Revive Employer Benefits
Revive offers employers a strategic advantage by enhancing benefit offerings while significantly reducing costs. It’s a powerful, compliant solution designed to improve retention, streamline benefits delivery, and create a measurable financial impact, making it a smart choice for forward-thinking organizations. Here is an overview of Revive Employer benefits:
1. Significant Annual Savings
Employers can save approximately $600 per W-2 employee each year, adding up to around $60,000 for a 100-person workforce.
2. No Direct Costs to Implement
Revive requires no upfront investment, making it a risk-free way to enhance your benefits package.
3. Lower Healthcare Claims
Employers typically see a reduction in insurance claims, with potential savings of about 5-10%.
4. Quick and Easy Setup
The program can be rolled out in just 30 to 45 days with automated systems for minimal administrative burden.
5. Improved Workforce Stability
Revive helps attract and retain top talent by offering valuable, modern benefits that enhance job satisfaction.
Revive Employee Benefits
Revive empowers employees with a robust set of financial and health-focused benefits. By integrating advanced pre-tax strategies, it enhances take-home pay, provides valuable wellness tools, and offers comprehensive coverage, all designed to support well-being and long-term financial security. Here is an overview of Revive employee benefits:
1. Higher Take-Home Pay
Employees can see a 3–4% boost in net pay, translating to approximately $100 more per month.
2. Free Access to Essential Services
24/7 Telehealth, wellness programs, virtual care, and mental health services are offered with no copay, promoting overall well-being.
3. Premium Health Management Tools
Employees get access to Mayo Clinic’s health tools and dashboards for better health tracking and decision-making.
4. Comprehensive Coverage Options
The plan includes valuable benefits like RX coverage, family coverage with 12 annual visits, and minimal essential coverage.
5. Includes Family and Spouse Coverage
The plan is not limited to the employee only. It covers the spouse, dependents, and family members.
Wrap-Up: Keeping Your Benefits Aligned with Life Events
Recognizing qualifying events and understanding eligible expenses are key to maximizing the value of a Section 125 cafeteria plan. Understanding cafeteria 125 plan qualifying events, such as marriage, childbirth, or employment shifts, and Section 125 eligible expenses is a must for employees and employers.
Choosing a solution like Revive simplifies this process by combining expert plan management with powerful tools like Preventative Care Management Plan (PCMP) and the Self-Insured Medical Expenses Reimbursement Plan (SIMERP). With Revive, both employers and employees gain clarity, compliance, and greater financial advantage.
Ready to Optimize Your Benefits? Start with Revive Today
Get a free proposal today to see how Revive can tailor a cost-effective, compliant benefits plan that fits your organization’s unique needs and boosts employee satisfaction.
