Plan 125 Explained Simply Without Corporate Tax Fluff

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2026-02-20 06:58:32 -

Most people hear plan 125 and their brain shuts off. Sounds like legal soup. But it’s actually simple once you stop reading IRS-style sentences and look at how it works in real life. A plan 125, also called a cafeteria plan, lets employees pay for certain benefits with pre-tax dollars instead of after-tax money, which means less taxable income and more money staying in your pocket. This...

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