Section 125 Plan

A Section 125 Plan, also known as a cafeteria plan, is a benefit offered by employers that allows employees to set aside a portion of their pre-tax income to pay for certain expenses like health insurance, dental, vision, or dependent care. By using this plan, employees reduce their taxable income, which can lead to paying less in taxes. It essentially provides a flexible and tax-advantageous way to pay for eligible expenses, making healthcare and dependent care more affordable.