Section 125 Plan Document Sample

Irs requirement for pre taxed employee benefits.

Section 125 plan document sample. This sample form section 125 cafeteria plan summary plan document spd is an important document which should be carefully considered in light of the employer s particular circumstances. You should consult with counsel regarding your use and all required modification s to this sample to protect and fit your particular needs and interests. The purpose of the plan is to allow employees the opportunity to elect to pay the portion of medical insurance premium costs for which they are responsible.

As is the case with our sample cafeteria plan documents since past special enrollment rights had only a 30 day timeframe. Although most cafeteria plan documents include hipaa special enrollment rights under code section 9801 f many plans likely do not allow for a 60 day election period. Because of differences in facts circumstances and the laws of the various states interested parties should consult their own attorneys.

The purpose of the plan is to allow employees the opportunity to elect to pay the portion of medical insurance premium costs for which they are responsible either on a pre salary reduction basis or through a post tax salary deduction. If taken as a. It is the intent that this plan shall qualify as a section 125 plan of irc as amended from time to time.

This sample document should be reviewed by the employer s attorney and modified as necessary to reflect any special provision as adopted by the company s. Premium only plan pop plan it is the intent that this plan shall qualify as a section 125 plan of irc as amended from time to time. Here is some basic information about the plan document.

Irs code section 125 d 1 sets the section 125 plan document requirement for employers offering the option of paying for health insurance and other benefits with a pre tax salary deduction. A section 125 plan document contains all information on the plan including eligibility rules. Eflex a division of tasc has provided this document as a sample.

This document is intended as a. A 125 cafeteria plan is a written plan that allows employees to elect between permitted taxable benefits such as cash and certain qualified benefits. If you are an employer wanting to allow your employees to pay group health and other insurance premiums with pre tax salary deductions the answer is yes you need a section 125 plan document.