Section 125 Cafeteria Plan

To be a one-stop shop for you, we’re now providing a Section 125 Cafeteria Plan and Wrap Documents for Benefit Plans. These plans will help keep your business compliant. Further, when you work with us, you’ll get this plan at a more affordable rate than many other agencies.

Section 125 Cafeteria Plan

A Section 125 Plan, commonly known as a Cafeteria Plan, enables employers to offer employees a choice between cash and certain qualified benefits without adverse tax consequences, thereby reducing tax liabilities for both parties. At Fusco Orsini & Associates Insurance Services and 4C Advising, we provide comprehensive Section 125 Cafeteria Plans to help your business remain compliant and offer valuable benefits to your employees.

Forms of Cafeteria Plans We Offer:

1. Premium-only Plans (POP): This basic and popular plan allows employees to pay their insurance premiums with pre-tax dollars. Benefits typically include health, dental, vision, accidental death and dismemberment, short—and long-term disability, and group-term life insurance.
2. Flexible Spending Accounts (FSA): Employees can make pre-tax contributions to an FSA to reimburse eligible expenses such as childcare, health plan deductibles, and other medical costs not covered by insurance. FSAs may also cover medical care reimbursement, dependent care assistance, and adoption assistance.
3. Full Cafeteria Plans: Employers make non-elective contributions for each eligible employee, who can use these funds to purchase benefits offered within the plan. Employees may also contribute pre-tax dollars to acquire additional benefits.
4. Simple Cafeteria Plans: Designed for certain small employers, these plans meet specific contribution, eligibility, and participation requirements, simplifying the process for employers and employees.

Our experienced team is dedicated to assisting your business in maintaining compliance and addressing any questions you may have regarding employee benefits. For more detailed information, please download our Section 125: Cafeteria Plan Common Questions.

To learn more about Section 125 Cafeteria Plans or to discuss your specific needs, please schedule time with Nisha Pravinchandra, our Vice President of Employee Benefits, or call/text her at (858) 836-7920. Nisha brings extensive expertise in employee benefits and is committed to providing innovative solutions tailored to your business requirements.

Note: This information is intended to provide a general overview and should not be construed as legal advice. For specific legal guidance, please consult with legal counsel.