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Section 125 Plan

tax break 75

Elections are irrevocable

Plan elections are irrevocable for the remainder of the plan year unless you experience an Internal Revenue Service (IRS) Change in Status Event. No election change will be retroactive except as required under the Health Insurance Portability and Accountability Act (HIPAA) or other applicable laws or policies. This means that once you elect to participate, you cannot change the elections that you have made for your eligible benefits until you have a qualifying event, or until the next Annual Enrollment period, whichever is sooner.

Qualifying Event

Examples of qualifying events include marriage, divorce, commencement or termination of a domestic partnership, addition of a new dependent through birth, adoption, or court placement, a change in employment status for you or your spouse/domestic partner, or moving into our out of an HMO service area.

When you experience a qualifying event, you have 31 days from the date of the event to make a change to your benefit elections. To make a change, complete the Premium Deduction Election Form and submit along with all necessary supporting documentation to your department's Payroll Clerk or to the Human Resources Benefits Unit at 575 Administrative Drive, Suite 117C, Santa Rosa. The change must be consistent with and as a result of the qualifying event. 

Before-Tax Premium Deductions

Deducting your premiums before taxes results in greater take-home pay. It does, however, limit your mid-year changes (involving premium increases or decreases) to the change-in-status events as specified in IRC Section 125 and the County’s Section 125 Premium Conversion Plan. Eligibility for this benefit does not affect your dependent’s eligibility for County-sponsored insurance.

Premiums for the following plans are deducted from your paycheck before taxes are calculated:

  • Medical
  • Dental
  • Life insurance premiums

NOTE: Premiums for life insurance coverage in excess of $50,000 (including employer-paid life insurance) are ineligible for before-tax deduction per Internal Revenue Service regulations.