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Section 125 Plan


Guest ty2433

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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

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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.

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