Premium Offset Plan (Section 125)
A Premium Offset Plan (POP) is the simplest type of a Section 125 "cafeteria" plan. It enables an employee to pay for eligible insurance premiums using pretax dollars. That means a reduction in federal income taxes, FICA payroll taxes, and, where applicable, state income taxes.
Eligible products include medical, dental, and vision insurance. With some caveats, they also include disability income and life insurance.
Overview
