Section 125 Plans

The Premium Only Plan is the most common part of a Section 125 Plan. It allows for certain employee paid group insurance premiums to be paid with pre-tax dollars. The qualified premiums (if offered by employer) are: Health, Dental and Vision insurance. 

If you have heard of the "Use it or Lose it" rule, this is the plan they are speaking about.  The health care flexible spending account (FSA) allows you to contribute pre-tax dollars to pay for eligible health care expenses such out-of-pocket expenses include medical, dental, prescription, hearing and vision expenses. You can also use your funds to pay for deductibles copays and coinsurance.  

A Dependent Care FSA is a pre-tax benefit account used to pay for eligible dependent care services, such as preschool, summer day camp, before or after school programs, and child or adult daycare.