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:
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).
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.