What is Section 125?

new2it · December 2003

Can someone explain to me what Section 125 is? I was told it has something to do with allowing an employee's spouse to join his plan if a lifestyle change occurs but I would like to have a clearer definition.

Thanks!

POPEYE · December 2003

I'm not an expert but Section 125 is an IRS code that allows pre-tax deductions for a cafeteria style benefit plan. I've not heard of there being any allowance for qualifying events such as you eluded to.

irenesmsaclaims · December 2003

Yes, Section 125 is a body of law encompassing flexible spending, dependent care and premium payment plans (a Cafeteria Plan). There is a part of it which allows participants to change their elections when a certain family status change happens. I think this is what you are referring to.

What is Section 125?

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