What does Section 125 Plan mean? Read on to discover the definition & meaning of the term Section 125 Plan - to help you better understand the language used in insurance policies.
Section 125 Plan
The Section 125 Plan allows funds to be deducted from an employee's pre-tax income to pay for benefits, such as health insurance. These plans are regulated by the IRS and allow the employer to save on expenses while also increasing the take-home pay for employees.
We hope the you have a better understanding of the meaning of Section 125 Plan.