A Section 125 “Cafeteria Plan” is a written document maintained by an employer that allows plan participants to receive benefits on a pre-tax basis via salary reduction.
As an employer offering a Health Savings Account (HSA) to your employees, the IRS requires you to have a Section 125 plan on file. You must be ready to present this document if requested during an IRS audit or directly by one of your employees. You can read more information here.
Managing your Section 125 Plan:
Storage: At your request, Lively can store these documents to ensure they are accessible when needed. If you would like Lively to store this document for you, please send a copy to your Customer Success Manager or the Customer Success team.
External Resources: You can use an external partner to put a Section 125 plan in place, we recommend Core Documents.
Note: Consult a tax professional for specific questions regarding your company and the Section 125 plan requirements.
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