I am trying to establish a Section 125 plan for our small business.
Section 125 plans allow for flexible spending accounts for the following purposes, documented at
- Accident and health benefits (but not Archer medical savings accounts (Archer MSAs) or long-term care insurance).
- Adoption assistance.
- Dependent care assistance.
- Group-term life insurance coverage (including costs that can’t be excluded from wages).
- Health savings accounts (HSAs). Distributions from an HSA may be used to pay eligible long-term care insurance premiums or qualified long-term care services.
We have at least 4 employees who would benefit from this. Aside from the obvious benefit of enabling them to shelter income from taxes, it looks like it should help some of them enjoy more substantial ACA subsidies.
Has anyone set this up for their small business? Any resources, vendors, tricks, or other techniques you’d recommend? TIA