SAGEs benefit plans utilize Section 125. This enables you to elect to pay
premiums for health, dental and vision coverage on a pre-tax basis. When you
use pre-tax dollars, you will reduce your taxable income and have fewer taxes
taken out of your paycheck. Under Section 125, you can actually have more
spendable income than if the same deductions were taken on an after tax basis.
Note: When you pay for your dependents benefit on a pre-tax basis you are
certifying that the dependent meets the IRS definition of a dependent. [IRC
152, 21 (b)(1) and 105(b)]. Children/spouses that do not satisfy the IRS definition
will result in a tax liability to you. It may change that dependents election to a
post-tax election, or result in imputing income on your W-2 for the dependents
coverage that should not have been taken on a pre-tax basis.
Your benefit elections are binding for the entire plan year unless a
qualifying life event occurs. Changes can only occur during the plan year
if you have a Qualifying Life Event, such as a birth or adoption, marriage
or divorce. You must notify the Benefit Helpline at 1-888-943-8477 or
firstname.lastname@example.org within 30 days from the status change.