Section 125 Document Preparation

Section 125 Plans allow for certain benefits to be paid for with pre-tax dollars. Substantial savings can be realized by both the employer and the employee under this arrangement. You will hear “Section 125 Plan”, “Cafeteria Plan”, “Medical Reimbursement Accounts”, “Dependent Care Accounts”, “Premium Offset Plans” and “Flexible Spending Accounts” all used in conjunction with Section 125 of the IRC. Some are used interchangeably. Whether the same or unique, all require formal plan documentation.

Under IRS and DOL Guidelines, documentation is required to authorize and establish a Section 125 Plan. The following are prepared by Concepts in Benefits, Inc. (CBI®) for our clients:

• Adoption Agreement
• Master Plan Document
• Board of Directors Resolution
• Employee Summary Plan Description
• Employee Enrollment Forms

Additionally, you may be required by the IRS to file an annual Form 5500 to report certain aspects of the employee participation.

CBI® has the expertise to produce your Section 125 Documents in full compliance with IRS and DOL Guidelines. CBI® can also assist your firm with filing your annual Form 5500.