MightyRecruiterA flexible benefit plan is a benefit program which allows the employee to choose how their benefits are distributed. There are two types of benefits: permissible taxable benefits and non-taxable benefits. The taxable benefits category usually primarily includes cash, while the non-taxable benefits can include anything from vacation time, insurance plans, retirement plans, and child care. This benefit program is regulated by the IRC 125. There is usually a core set of benefits that are already established in advance, allowing the employee to only choose how the rest of the benefits dollars offered by the employer are allocated among several benefit options.
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