Section 125/
Flexible Spending Account

The three basic forms of Section 125 Plans are:

Premium Only Plan: Allows employees to pay their portion of insurance premiums with pre-tax dollars, reducing both the employer and employee tax.

Flexible Spending Account: Employee’s pre-tax contributions allow reimbursement for qualified daycare expenses and eligible medical, dental and vision expenses.

Full Cafeteria Plan: Employees allocate the employer contribution to purchase any benefits offered while contributing pre-tax dollars to purchase additional benefits.