Section 125 Plan

[Guest ty2433]

Large employer has a health plan. 80% of the employees are in a self- insured plan while the other 20% are in a insured plan.

The self-insured plan: The insured plan: Consists mostly of salespeople

80% employer contribution 20% employer contribution

20% employee contribution 80% employee contribution, however if the salesperson sells more he can get a higher employer

contribution

Can this employer have their employees pay for their contributions pre-tax through a Section 125 Plan?

Thanks,

ty2433

[Chaz]

See my response on the "Health & Welfare Plans in General" board
.

[Guest chestertown3]

Sure - Chaz please look into PRPs. They are a good answer to pre-tax savings for groups with different levels of plan design and contributions.

[Chaz]

I'm not sure PRPs will work in the employer-sponsored plan context.

[leevena]

What is a PRP?

[Guest morris]

Short answer to OP--yes.