Is 125 Health Insurance Really Pre-Tax?
If you’ve heard the term 125 health insurance plans, you may be wondering what it actually means, and more importantly, whether it really offers pre-tax savings. The answer is yes, but the story goes deeper. A 125 health insurance plan, also known as a Section 125 plan or cafeteria plan, is more than just a […]
What Events Count for IRS Section 125 Changes?
Section 125 plans give employers and employees a powerful way to manage health and wellness benefits while maximizing tax savings. But what happens when life changes? Can employees adjust their elections mid-year? The IRS has clear rules for this. Under a Section 125 cafeteria plan, changes to benefit elections are typically only allowed during open […]