POP Overview

A premium only plan (POP) document allows employees to use pre-tax dollars to pay for certain employee benefits. IRS Section 125 allows employees to pay their portion of certain employee benefit premiums using pre-tax dollars. Also referred to as a cafeteria plan, a POP plan is a separate written plan maintained by an employer for employees that meet specific requirements and regulations of the IRS Section 125. A qualified benefit is a benefit that does not defer compensation and is excludable from an employee's gross income.

Typical Group Employee Benefits that Qualify

  • Health
  • Dental and vision
  • Group Term Life Insurance
  • Disability
  • Cancer
  • Hospital Indemnity
  • Accident
  • Dependent care
  • Health savings accounts
  • Adoption assistance