
New Mexico Association of School Business Officials LMS
2024 Fall Conference: 30. Section 125 Plan
Pre-tax Savings – Employees are able to pay for benefits on a pre-tax basis, typically a 25-30% savings on elected contributions, when compared with using after tax dollars.
Control – Leveraging the pre-tax benefits of the Section 125 plan allows participants to control how to use their income to adequately cover the expenses for them and their family. FSA programs allow participants to set aside pre-tax dollars which can be used to pay for out-of-pocket expenses that they know may be incurred throughout the year.
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Brady Barham
Managing Partner
Burba Insurance Services
Brady Barham has been in the insurance industry since 1994, specializing in the K-12 public School sector, providing Benefit Administration Services, including Section 125 Cafeteria Plans and related benefits.