105/125 Plans

What is a 105 Plan?

In some instances, employer(s) are looking for additional savings. This may be accomplished through a Section 105 plan. With a 105 plan, the employer purchases a high deductible insurance plan and offers the employees a lower deductible plan. The employer saves in the premium difference while also sharing in the cost of the deductible and co-insurance expenses between the two plans. These are often called partial self-funded or split –funded plans. This plan is not for every group. However, the employer(s) can often control premium costs and save on the total health care package. IBIS offers this turn-key administrative service.

For more information, view the "Understanding Your 105 Advantage Plan" brochure.

For an online presentation click here.
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Forms

105/125 Bulletins

What is a 125 Plan?

Many employer(s) are looking for ways to offer more benefits to their employees on a tax favored basis. IRS code Section 125, commonly referred to as a “Cafeteria Plan” or “Flex Plan” is one way of doing this. The employee chooses to set aside a portion of his/her salary on a “pre-tax” basis to pay for uncovered medical expenses, dependent care expenses and premiums. The employer saves FICA (Social Security and Medicare) tax on every dollar the employee sets aside while the employee saves Federal, State, and FICA tax. Cafeteria plans are an excellent way to create extra spending dollars for both the bank and the employee. IBIS offers this turn-key administrative service. Please contact one of your marketing representatives listed above.

For more information, view the "Understanding Your 125 Plan" brochure.

For an online presentation click here.