Understanding Section 125 Cafeteria Plans
Sana plans are set up to be compatible with Section 125 Cafeteria Plans. These plans offer meaningful tax benefits to both employers and employees—but they also come with specific compliance and setup requirements.
Here’s what you need to know:
What is a Section 125 Plan?
A Section 125 Plan, also known as a Cafeteria Plan, allows employees to pay for certain benefits—like health insurance—using pre-tax dollars.
This can reduce taxable income for employees and lower payroll taxes for employers.
To stay compliant with IRS regulations, employers who deduct premiums pre-tax must have the following documentation on file:
- Section 125 Plan Document: This outlines which benefits are available, eligibility rules, and required details as defined by the IRS and ERISA.
- Summary Plan Description (SPD): This describes how the plan works, when employees are eligible, and how they can file claims. SPDs are automatically created for each employer and are available in the Document Center of your Sana Admin Dashboard.
Who provides Section 125 documentation?
➡️ Your broker is responsible for providing guidance and documentation related to Section 125.
If you're unsure whether your broker offers this service, we recommend reaching out to them directly to confirm.
Still have questions? We've got you covered.
- Log in to view your account and documents
- Search FAQs in our Help Center
- Email us at admins@sanabenefits.com
Or call us at (940) 340-4488, Monday–Friday, 9 AM–4 PM Central