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null725Answer
Level 13
Jun 7, 2019 9:59 PM UTC

SEC 125 is your employer's benefit plan. It is also known as a "cafeteria plan". Usually, what is reported there is your medical insurance premiums that are paid with pre-tax income. They are not taxed and are not included in your W-2 Box 1 wages so you can not deduct them as medical expenses.

9 replies

null725Answer
Level 13
Jun 7, 2019 9:59 PM UTC

SEC 125 is your employer's benefit plan. It is also known as a "cafeteria plan". Usually, what is reported there is your medical insurance premiums that are paid with pre-tax income. They are not taxed and are not included in your W-2 Box 1 wages so you can not deduct them as medical expenses.

Alumni - Champ
Jun 7, 2019 9:59 PM UTC
Also referred to as a Flexible Benefits plan.