What types of insurance benefits can be paid on a pre-tax basis?
The Adoption Agreement for the plan has a checklist of all qualifying benefits. Premiums for medical, dental, and vision insurance are the most common benefits offered under a Premium Conversion Cafeteria Plan. If your client offers a high deductible health insurance option with a Health Savings Account (HSA), an employee’s HSA contributions may also be contributed pre-tax under the Premium Conversion Cafeteria Plan. Other available pre-tax benefits include life insurance and disability insurance, but there are additional tax considerations if these benefits are offered. Under current law, long-term care insurance premiums cannot be paid on a pre-tax basis.
