If an employer has a 125 in place, can an employee choose which plans to pre-tax
If an employer has a 125 in place, can an employee choose to opt out of 125 plan by insurance plan/product, or does their participation in the pre-tax POP plan have to be all or nothing?
Meaning, can they choose to pre-tax Medical but post-tax Dental? Or if they choose to pre-tax any benefit then every allowable pre-tax plan has to be pre-tax as well on their paycheck? OR they choose to opt-out of the 125 altogether?
A Section 125 Cafeteria plan actually gives the employee quite a bit of flexibility. Most of the requirements are on the employer to offer at least one pre-tax option and make sure it’s qualified. For any specific questions on the plans offered by your employer, you may find your plan benefits administrator to be a better source to ask. Or if you haven’t selected a vendor, consider an HR/Benefits/Payroll vendor like Gusto that offers insurance at a great price.
Otherwise, you can find information below on how it works for both employer and employee. Good luck!