Section 125

Section 125 of the IRC allows you to pay many of your benefit premiums on a pretax basis. Doing so saves you money (as much as 25-40% of the cost). If you elect health, vision, and/or dental coverage, your portion of the premium cost is automatically deducted from your pay on a pretax basis. The Medical and Dependent Care Spending Accounts described later are also offered as pretax benefits through Sec. 125.