Compliance & legal
Section 125 (Cafeteria plan)
An IRS code section that lets employees pay for benefits with pre-tax dollars. A "cafeteria plan" is the formal name for the arrangement. Required documentation includes a written plan document, election forms, and non-discrimination testing.Last reviewed: · TMRW Benefits is a benefits brokerage, not a tax or legal advisor. Consult a CPA or attorney for situation-specific guidance.
More in Compliance & legal
ERISA (Employee Retirement Income Security Act of 1974)
Federal law governing most private-sector benefit plans.
COBRA (Consolidated Omnibus Budget Reconciliation Act)
Continue group coverage up to 18-36 months after losing eligibility.
ACA (Affordable Care Act)
2010 federal law restructuring U.S. health insurance markets.
HIPAA (Health Insurance Portability and Accountability Act of 1996)
Federal law protecting health information privacy.
Premium-only plan (POP)
Simplest Section 125 plan. Pre-tax premiums only.
MEC (Minimum Essential Coverage)
Coverage level satisfying ACA mandate requirements.
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