Non-Elective Contributions - direct employer contributions, if any, and;
Elective Contributions - employee salary reduction contributions.

WHAT OPTIONS ARE ALLOWED UNDER THE INTERNAL REVENUE CODE SECTION 125?

Group Medical Insurance
Dental and/or Vision Insurance
Other Medical Coverage, such as HMO’s or self-insured plans
Group Term Life Insurance for employees only - up to $50,000 Face Amount
Accidental Death Insurance
Short or Long Term Disability Income Insurance
Dependent Care Expenses
Medical Expense Reimbursement

HOW CAN THIS PLAN CAN HELP YOUR BUSINESS CLIENTS?

Reduce tax obligations by selecting pre-tax payroll deduction benefits.
Provide new dollars to purchase needed benefits for employees and their families.
An employee selects what is needed from wide range of benefits made available to the employer.

HOW THE PLAN WORKS

A portion of funds allocated for salaries or benefits may be provided to each employee for the Plan.
A salary reduction agreement between the employer and employees establishes the funds for the plan.
These funds are then used to pay for those benefits selected by each employee.
Not only will this plan help employees, but it can generate savings for the employer by reducing taxable payroll base.