Premium Only Plans
In order for benefits to be eligible under a flexible compensation plan, they must meet the technical requirements of various IRS Code Sections that grant them non-taxable status. The IRS Code Sections relating to those benefits available under the Benefits Design Group, Inc. program are as follows:
Section 79 (Group Term Life Insurance)
Section 79, relating to group-term life insurance, contains certain nondiscriminatory requirements. The maximum amount of non-taxable group term insurance available is $50,000. Any additional group term life insurance is considered a taxable benefit. Only the premiums for the first $50,000 of group term life coverage may be pre-taxed under the program. Dependent life insurance is not eligible for pre-tax treatment.
Sections 105 & 106 (Medical Premiums and Expenses)
Sections 105 & 106 address medical insurance premiums and medical expense reimbursement plans. Medical or Medical-related insurance premiums (employee group premiums or individual premiums only) and medical expenses which have not been reimbursed by medical insurance or claimed as deductions on personal income tax are eligible for pre-tax treatment. Medical-related premiums include Health, Accident, Dental, Cancer, Vision, Hospital Indemnity and Intensive Care policies.
Benefits Design Group, Inc. offers two other Section 125 Flexible Benefit Plans:
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