POP Overview
A premium only plan (POP) document allows employees to use pre-tax dollars to pay for certain employee benefits. IRS Section 125 allows employees to pay their portion of certain employee benefit premiums using pre-tax dollars. Also referred to as a cafeteria plan, a POP plan is a separate written plan maintained by an employer for employees that meet specific requirements and regulations of the IRS Section 125. A qualified benefit is a benefit that does not defer compensation and is excludable from an employee's gross income.
Typical Group Employee Benefits that Qualify
- Health
- Dental and vision
- Group Term Life Insurance
- Disability
- Cancer
- Hospital Indemnity
- Accident
- Dependent care
- Health savings accounts
- Adoption assistance