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Section 125 Plan Document

KHelgesonKHelgeson 14 Posts
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I find myself in an unfortunate position. As I came onboard with this organization, I was told that we had a Section 125 plan. However, I find that the company never "officially" adopted a Section 125 plan, but has been taking medical deductions on a pretax basis.

Should anyone have some quick reference material regarding the plan setup or minimum requirements I would appreciate some direction. If further information is required please let me know.

Thanks
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Comments

  • 3 Comments sorted by Votes Date Added
  • JanetJanet 124 Posts
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    At the risk of offending the site sponsor, I often refer to my Thompson Publishing Group guide--"Flex Plan Handbook". No doubt Smith Publishers has a similar guide. Updates are sent regularly. Also, I believe speaking with legal counsel would be wise at this point.
    I had lots of headaches getting our Section 125 set up, too. Good luck!
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  • SystemSystem 5,885 Posts
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    No offence taken, Janet! x:-)

    The forum is for everyone to glean helpful information ... and that type of information is helpful for us to know, too.

    Christy Reeder
    Website Managing Editor
    [url]www.HRhero.com[/url]
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  • Lori BLori B 172 Posts
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    Hi

    This is a serious issue. If you are audited, both company and ee must pay back taxes on all those deductions.

    We outsourced our 125 plan to a company called Allied Benefit Systems in Chicago. They provided the plan documents, an SPD, the directors'consent to adopt the plan, and adminster the payouts. They also prepare the annual 5500s. They have worked out ok for us. If you want more info, let me know. Lori


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