Section 125 Pop Plan

Code where the treasury irs lays out the rules for employers wanting to allow employees the option of pre tax salary deductions to pay group health and related insurance premiums.

Section 125 pop plan. You still have to offer group health insurance separately. Traditionally these pop plans have been used in combination with employer sponsored group health insurance plans. The name section 125 plan pop derives from title 26 section 125 of the united states tax code.

These benefits may be. A section 125 pop or cafeteria plan is a written plan section 125 is part of the u. A section 125 pop lets your employees pay their insurance premiums with pretax dollars.

A section 125 premium only plan pop is a cafeteria plan which allows employees to pay their health insurance premiums with tax free dollars. 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. It defines the term cafeteria plan and describes the types of benefits such a policy may include.

The formal definition of a section 125 plan to pre tax benefits says. It provides participants an opportunity to receive certain benefits on a pretax basis. A premium only plan can include a cash in lieu of benefits provision for employees who don t want coverage under the group plan.

Section 125 d cafeteria plan defined. This law outlines the rules employers must follow when establishing a cafeteria plan.