What Is a Section 125 Plan? A Simple Guide to Pre-Tax Savings
A Section 125 health plan pre-tax is a benefit presented by way of employers that lets in employees to apply a component of their revenue earlier than taxes are taken out to pay for eligible fees. These include such things as ordinary health-related offerings, certain insurance charges, or even based care. What makes this plan appealing is that the money set aside isn't always taxed—which means extra of your profits move in the direction of your actual desires as opposed to going to taxes.
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