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Section 105 Plan vs Section 125 Cafeteria Plan: What’s the Difference?

To control healthcare costs, some employers are turning to tax-advantaged medical reimbursement accounts. In fact, these types of account-based Health plans are becoming an increasingly popular option among employers. As organizations evaluate using Health Reimbursement Arrangements (HRAs) and/or Health Savings Accounts (HSAs), two terms are often thrown around: “Section 105 Plans” and “Section 125 Cafeteria Plans”. Though closely related, and often confused, they are two different types of plans.



This post first appeared on Small Business Employee Benefits And HR, please read the originial post: here

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Section 105 Plan vs Section 125 Cafeteria Plan: What’s the Difference?

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