Tag: 125

IRC Section 125 sounds like something written by people who enjoy confusing others for a living. That’s fair. It lives inside the tax code and tells employers how they can let workers pay for certain benefits with pre-tax dollars. Simple idea, messy execution. At its core, IRC Section 125 is a...

Instead of paying tax on your full income and then covering expenses like health insurance, a portion of your salary is set aside first, pre-tax, to cover those costs. A sec 125 plan sounds complicated at first, but it’s really just a simple shift in how your money is handled before taxes. T...