Section 125 and Vision

Earl

Our company offers a separate and enhanced vision benefit. Is this premium eligible for our premium only plan - our pre-tax plan? Would enrollment in the vision plan be restricted to open enrollment and life events just like health? (Because of the tax implications?) or not since it is an optional program?

joannie

Our vision, dental and disability plans are all optional. The vision and dental plans are both on our 125 and paid with pre-tax dollars and enrollment is handled in the same manner as health; new hires, open enrollment and qualifiying events. The disability plan is not paid with pre-tax dollars, but has same enrollment restricitons.

NeedCoffee

I'm going to say yes, it is eligible for the POP. All of our programs are optional, and everything except life insurance and disability are pre-tax. Hence, enrollment is restricted to new hires, open enrollment, and special qualifying events.

Also, remember that each employee has the option of having their premiums withdrawn pre-tax - participation in the POP is voluntary. Of course, 99.9% of employees participate in the POP, since it helps their paychecks. However, we do have a few that know they will want to make changes during the plan year, therefore they request post-tax treatment of all premiums.

At least, that's how our plan works.

NaeNae55

Vision plans are generally eligible for Section 125. Remember, glasses and eye exams are qualified for medical reimbursement, so why wouldn't the coverage itself count? If your vision plan covers something else besides eye exams and/or glasses/contacts you might need to contact an expert.

Good luck!

Nae