(303) 369-3200

Tuesday, 07 January 2014 10:00

Do You Know Where Your POP Plan Document Is?

Written by
Rate this item
(0 votes)

 Providing a Section 125 Premium Only Plan (or POP Plan), is a great tax benefit for both employees and employers.

  • It allows the employee portion of the health, dental, or vision premium to be deducted on a pretax basis, which increases the amount of their take home pay.
  • Since the employee premium contribution is not counted as income, employers also benefit from the reduction of payroll taxes, which saves you 7.65% of those premiums on FICA taxes.
  • These tax savings for employers helps offset the cost associated with an employer sponsored plan.

POP Plans are the easiest of all the cafeteria plans to administer. But, in order for this type of plan to run properly, it must be compliant with IRS rules and regulations. Failure to have a written plan document or to administer the plan in accordance with that document can cause the loss of a tax-favored status, resulting in a tax liability for the employee and employer. . The POP plan is designed to renew year after year and only requires updating if the employer makes changes to the plan that would necessitate an amendment (i.e. changes in eligibility, plan year, benefit changes such as whether HSA contributions are also allowed, etc.). . However, due to the changes being brought upon by healthcare reform, many industry leaders are recommending an amendment or restatement, to keep your POP plan document in compliance. If your POP plan document has not been updated in several years, be sure to contact your Section 125 administrator. . If you do not have a POP Plan document, or an administrator, call Fall River at 303.369.3200 or This email address is being protected from spambots. You need JavaScript enabled to view it., and we will be happy to get you introduced to someone who can help get you compliant.

Read 10685 times Last modified on Monday, 14 September 2020 20:34
Amy De Lorenzo

Amy Johnston is an Account Manager with extensive experience working with both large and small employers as a broker.  In addition to five years of broker experience prior to joining Fall River, she also brings eight years of insurance carrier expertise.  Amy is an expert on ERISA, the Affordable Care Act, and other compliance issues.

Ms. Johnston received a Bachelor of Arts degree in Communications from Colorado State University. She is a Colorado native from Steamboat Springs, and loves spending time in the mountains with her husband, two children, and Tucker the cocker spaniel. She enjoys snowshoeing, hiking, and philanthropy work to promote education.