Section 125 Cafeteria Plan
Section 125 allows you to select from a variety of eligible benefits that allow you to deduct premiums from gross earnings before taxes are computed. This gives you more spendable income because current after-tax expenses, such as insurance premiums and benefits, can now be paid for with pre-tax dollars.
How much can a Section 125 Cafeteria Plan help you? Use the sample paycheck calculator below to see an example of how much you could be saving.
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How much can a Section 125 Cafeteria Plan help you?Use our Section 125 calculator to see an example of how much you could be saving. |
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EnrollmentTo enroll, simply complete an election form with your American Fidelity Account Representative. You will be notified in advance when it's time to enroll. In most cases, you must re-enroll in the plan each year to continue your participation in the Section 125 Plan. |
Changes to your plan
The only time tax law regulations allow you to make a change to your plan is if you have experienced an allowable election change event. Some examples of these events include: legal marriage, change in number of dependents, termination or commencement of employment/change in work schedule, dependent's eligibility/ineligibility according to plan requirements, change in residence or worksite that affects eligibility for coverage.
Interested in Section 125?
Talk to your employer about the benefits of partnering with American Fidelity.
