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What are the types of Section 125 plans?

April 26, 2017plans section types

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What are the types of Section 125 plans?

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There are three types of section 125 programs: premium conversion plans, flexible spending account programs, and full-flex plans. Premium conversion plans allow plan participants to convert employee contributions for group health/dental insurance premiums from a post-tax basis to a pre-tax basis. FSA programs allow employees to set aside money, via salary reduction, to reimburse health/dental/vision and dependent day care expenses on a pre-tax basis. Full-flex plans allow employees to choose from a menu of various pre-tax benefits. Often, Section 125 plans combine elements of all three types of the above.