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    JimmyChum's Avatar
    JimmyChum Posts: 1, Reputation: 1
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    #1

    Jan 25, 2008, 06:02 PM
    What is a Sect 125 Plan?
    What is a Sect 125 plan?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Jan 25, 2008, 06:19 PM
    They are wonderful, it is a benefit package, that allows benefits such as health and life insurance ( and dental) to be taken out of your pay check before taxes. So you are saving all of the tax value of your benefit dollar.

    So if you pay lets say you have 100 dollars a week withheld from your check for insurance, if so then the tax on that 100 is not held out of your check. It allows you more benefits at a lower total dollar out of your check.

    ** not the best definition I guess but I hope it helps you

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