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Hi, this is Connie Chiara with Corporate Benefit Partners. When it comes to employee benefit plan compliance, I often find that employers are not maintaining the correct Section 125 plan documents. A Section 125 plan allows employees to pay for certain benefits on a pre-tax basis. The most basic and most popular type of a Section 125 plan is a premium only plan.

This is the type of plan that allows employees to contribute their medical, dental and vision dollars with pre tax money. It’s important to remember that the IRS requires that you have a written plan document that complies with IRS section 125 code. It also requires that employees be provided with a written summary plan description explaining section 125 plan rules.

Without these documents in place, your plans are not compliant and you may have an issue upon IRS audit. If you have any questions about your Section 125 plan documents, call me. Let’s talk benefits.