Get Pro-Assistance 24*7 on Premium-Only Section 125 Plan

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WelcomeTo

• Davidow Financial Insurance Services, Inc.

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Get Pro-Assistance 247 on Premium-Only Section
125 Plan

• Basically, a cafeteria plan allows employees to
  either
• Avail benefits like health insurance or life
  insurance on a pretax basis, or
• Receive a comparable yet taxablebenefit in cash.

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What is Premium-only section 125 plan POP?

• This plan allows your employees to pay their
  insurance premiums with pretax dollars.
• However, the plan isnt actually insurance itself
  and you would still have to offer group health
  insurance separately. 
• This POP may include a cash-in-lieu of benefits
  provision for employees who dont wish to have
  coverage under the group plan.
• Employees who are enrolled in any other group
  health plan (like a plan from a spouse or parent)
  can opt to receive a fixed amount of cash
  instead.

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Is health insurance pretax with a Premium Only
Section 125 Plan POP?
Yes, it is! As per the section, Employee
contributions to group health insurance premiums
are pretax as long as a Premium only Section 125
plan POP is in place. Or else, their
contributions are taxed. However, Employer
contributions are pretax always.     
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What are the benefits of a Section 125 POP?

• Being able to pay for premiums using pretax
  dollars is the most exciting benefit for all
  employees, but its also a win for the employer
  as well.
• The amount your employees contribute is deducted
  from their total wages, hence it reduces the
  amount of employee payroll taxes you are set to
  pay.
• Premium Only Section 125 Plan POP isnt just
  applicable to health insurance, either.
• These cafeteria plan advantages can be applied to
  premiums for other group insurance products as
  well.

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Is there any difference between a POP and a full
Section 125 plan?
With a POP plan, an employee is eligible for
benefit premiums. Whereas health savings account
(HSA) contributions can be made on pretax
grounds.  On the other hand, A full Section 125
plan also allows you to subtract eligible
contributions to flexible savings accounts
(FSAs) dependent child care on a pretax basis. 
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Are POPs subject to ERISA requirements?

• Yes! Let us explain and provide you information
  on the same.
• The Employee Retirement Income Security Act of
  1974 (ERISA) refers to a federal law which sets
  minimum standards for most of the voluntary
  retirement and health plans.
• Even though a POP is actually an ERISA plan, the
  benefits paid through it are. 
• The employer should be well informed that all
  reporting and disclosure requirements apply to
  every ERISA-covered benefits for example, group
  health insurance, dental, and disability. 

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General ERISA requirements may include

• Summary plan descriptions of the plan
• Well-Written plan documentation
• Form 5500 filings for certain specified plans

DF Insurance is a top notch financial institution
providing world class solution for regulatory
compliance requirements. We have a team of highly
experienced professionals who provide exceptional
assistance to all employers associated with us in
saving up on group insurance plans with pre-tax
dollars and also ensuring employees do not have
to compromise on any health benefit coverage.
Call us now at [phone] We are within
your reach always!
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Contact us
Davidow Financial Insurance Services,
Inc. 20700 Ventura Blvd. Suite 235 City
Woodland Hills State California Zip
91364 Phone [phone] Email
info_at_dfinsurance.com
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