Thank you for sharing!

Your article was successfully shared with the contacts you provided.
HRA card The HRA has the most flexibility of any pre-tax account. As the employer, you choose the amount of the benefit, the eligible expenses for reimbursement, and whether to include a rollover provision. (Photo: Shutterstock)

Pre-tax salary withholding plans come in many shapes and sizes. You may even hear them referred to by several different names like cafeteria plans, section 125 plans, or flex plans.

Pre-tax health accounts and premium reimbursements are available because of Internal Revenue Code (IRC) section 125. Plans formed under section 125 are often called “cafeteria plans” because they allow employees to lower their taxable earnings to pay for pre-tax benefit offerings pre-selected by the employer.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

BenefitsPRO Broker Expo 2021Event

The premier educational and networking event for employee benefits brokers and agents.

Get More Information


Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.