Section 125 Irs Code

100 203 as added by pub.

Section 125 irs code. These benefits may be. Section 125 of the internal revenue code refers to cafeteria plan benefits. Cafeteria plans include both taxable and nontaxable benefits.

Irs section 125 code cafeteria plan documents are one of the most underused employee benefits for small businesses. A section 125 plan is part of the irs code that enables and allows employees to take taxable benefits such as a cash salary and convert them into nontaxable benefits. Irs section 125 tax code.

A section 125 plan provides employees with an opportunity to pay for certain benefits on a pre tax basis allowing them to increase their take home pay. Internal revenue code 125. For provision that for purposes of section 125 of the internal revenue code of 1986 a plan shall not be treated as failing to be a cafeteria plan solely because under the plan a participant elected before january 1 1988 to receive reimbursement under the plan for dependent care assistance for periods after december 31 1987 and such assistance included reimbursement for expenses at a camp where the dependent stays overnight see section 10101 b 2 of pub.

Cafeteria plans on westlaw findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. These plans allow employees to pay tax free premiums for group health insurance and other qualified benefits such as group term life accident long term care and dread disease coverage medical expenses and dependent care expenses. For more detailed codes research information including annotations and citations please visit westlaw.

Section 125 of the internal revenue code defines rules that allow employers to offer cafeteria style benefit plans to their employees according to the irs.