Versions Compared


  • This line was added.
  • This line was removed.
  • Formatting was changed.

Flexible Benefit Plan

Section 125 of the Internal Revenue Code allows employees to convert taxable cash (salary) into non-taxable benefits. Employees may choose to pay for qualifying benefits with "before tax dollars," rather than "after tax dollars," thereby, paying less in taxes and realizing more spendable income. Benefits under the plan are funded through a salary reduction agreement. The plan is in four basic parts: