A Section 125 Flexible Benefit Plan allows you to select from a menu of benefits, choosing those benefits that meet your specific needs. The benefits that you choose are then paid for through a salary reduction agreement with your employer. Salary reduction means that you are able to use "pretax" dollars to pay for certain benefits that you may have previously paid for with "after-tax" dollars.

By implementing this plan, your employer is helping you to reduce your taxes and to increase your spendable income. The cost saving advantage of the plan is simple. Any benefit cost or insurance premiums that you pay for under the plan are paid on a pretax basis.

Menu of Benefits

Section 125 Flexible Benefit Options are chosen by your employer to coordinate with some of the benefits you can elect through them. Below are the most common premiums that can be purchased with pretax dollars. Verify which of the following benefits are available for your employer's plan.

	Medical Insurance
	Dental Insurance
	Vision Insurance
	Cancer Insurance
	Group Term Life

Flexible Spending Accounts are also benefits that your employer can elect to have in their plan. Below are the two benefits that can be purchased with pretax dollars. Verify if these benefits are available.

Medical Expense Reimbursement Plan

Dependent Care Expense Assistance Plan

Medical Expense Reimbursement Plan can be used to reimburse you for medical, dental and vision expenses that are not reimbursable by your insurance plan. This includes deductibles and co-insurance cost that you have to pay out of pocket for services for medical care.

Dependent Care Expense Assistance Plan can be used to reimburse you for dependent care expenses to allow you and your spouse to work. Dependents must be under 13 years of age if they are your children.