What Is Section Plan

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. A plan offering only a choice between taxable benefits is not a section 125 plan. Plan drawings are in fact a type of section but they cut through the building on a horizontal rather than vertical plane.

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A section 125 cafeteria plan is an employer sponsored benefits plan that lets employees pay for certain qualified medical expenses such as health insurance premiums on a pre tax basis.

What is section plan. The direction of the plane through which the section is cut is often represented on plan drawings and elevations by a line of long and short dashes called a section plane. A section 125 plan is the only means by which an employer can offer employees a choice between taxable and nontaxable benefits without the choice causing the benefits to become taxable.

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