Your plan year is from December 1st thru November 30th
The following employee premiums can be deducted on a pre-tax basis through a Section 125 Plan:
- Medical Insurance
- Dental Insurance
- Vision Insurance
- HSA Contributions
Enrollment
You must complete an election form, even if you are declining participation. To elect to participate in the 125 plan, just check the appropriate box(s).
Benefit Changes
Once you determine what your pre-tax elections will be for the year for you cannot change those elections unless you have one of the following "life status changes" occur:
- Change in marital status
- Change in the number of dependents
- Change in employment status
- Dependent's satisfying or ceasing to satisfy dependent eligibility requirements
- Significant Cost Changes
- Significant Curtailment of Coverage
- Addition or Improvement of Benefit Package Option
- Change in Coverage of Spouse or Dependent under another Employer Plan
- Loss of other health coverage
- Judgment, decree, or order
- Entitlement to Medicare or Medicaid
In the event that you have a "life changing event", you must complete the necessary paperwork and notify the Administrator within 30 days if you wish to change the status of your insurance coverage.
Section 125 Plan
Section 125 is a provision of the Internal Revenue Code that allows employees to pay their share of the cost of certain group insurance benefits with pre-tax dollars. Under this provision, your paycheck is reduced by the group insurance deductions before Federal, State, and FICA taxes are calculated. This results in lower taxable income, and higher take-home pay.
Brought to you by:
Arizona Benefits Authority
10844 N Cave Creek Rd
Phoenix AZ 85020
602 943 -7500
