A Premium Only Plan (POP) allows Plan Participants to convert otherwise after-tax accident or health insurance premiums to pre-tax or tax-free premiums. Participation in this type of plan must be offered by the Employer on a nondiscriminatory basis. The Plan must be written and the Employee must elect such benefits in writing.
By converting these employer sponsored accident and health insurance premiums from after-tax to pre-tax it will...
- Make benefits more affordable
- Increase spendable income of the participant
- Participant's taxes will be reduced