A Cafeteria Plan (section 125) allows employees to pay for their employer-sponsored insurance premiums with pre-tax dollars. The employer may also implement a Flexible Spending Account into the Cafeteria Plan, which allows employees to also pay for expenses such as deductibles, co-insurance, co-pays, prescription drugs, vision expenses, and dental expenses with pre-tax dollars. Even the most comprehensive insurance policies have out-of-pocket expenses. FSAs can help your employees save on these expenses.
Flexible Spending Accounts encompass all aspects of a POP plan with these additional value-added services:
By implementing an FSA into your Cafeteria Plan, you can reduce your employees’ taxable compensation.
To find out what products are eligible for purchase under your Flexible Spending Account please click on the link below to review or purchase.
*Please Note: FSA and HSA eligible products follow the same IRS 213d eligible expense list*