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Beware of “FREE” or self-serve Section 125 Plan Documents

Don't be penny wise and pound foolish when it comes to your company's Section 125 plan document.

When you search online for, “Section 125 Plan Documents,” chances are good your search results will include web sites offering cheap or even free self-serve plan document templates.

Sounds good at first. After all, the whole point of setting up a Section 125 plan is to save money by eliminating income tax on insurance premiums. And what saves more than free?

Problem is, there is more to meeting the U. S. Code’s Section 125 plan document requirement than changing the name and address on a form. Without a quick compliance review, your “automated” Section 125 plan document may

Here are just a few things that go into a qualified Section 125 plan document that one-size-fits-all just can’t do.

Compliance agencies

Section 125 plan documents from pre-printed, downloaded, or automated templates are unlikely to meet the requirements of all the bureaucracies overseeing Section 125 plans. These include:

  • Department of Labor,
  • Internal Revenue Service, and
  • Affordable Care Act (Obamacare).

Dealing with government agencies is never part of a fun day, but if your Section 125 plan document is found to be out of compliance with any of these good folks, you can expect to have several less fun — and potentially costly — days spent with them.

Laws in flux

The rules governing Section 125 Plans and other tax-saving benefits are always changing, and the changes can come from unexpected places. For example, when the IRS/ACA returned the stand-alone HRA in the form of the new QSE-HRA, it was buried near the bottom of a bill called The 21st Century Cures Act. The 2017 Tax Cuts and Jobs Act made changes to Section 132 Transit & Parking plans.

It takes a company with a qualified staff devoted to continually monitoring Congress’ actions that impact these plans to keep Section 125 plan documents up-to-date.

When there is a change to the law that must be reflected in existing plan documents, Core Documents notifies every client so that you are aware and updates can be made immediately. A free fill-in form or cheap template does not do that.

No easy answers

Even with your best efforts, it is still likely that you will complete a template or form with any number of compliance infractions — unless you have professionals with specific knowledge of plan document requirements working for you.

For Section 125 plans, not getting it right can mean reclassifying all the pre-tax salary deductions to taxable income, plus interest and penalties. Other fines and penalties can attach, too, including a $110 per employee, per day fine for ACA non-compliance.

Core Documents offers free plan design consultations before ordering and a thorough review of the information you submit to us for your plan document. If anything doesn’t seem right, we contact you to learn more.

Why pay a higher price?

When a company tries to get by with a one-size-fits-all form or template, they put themselves (and possibly their employees) at risk of paying far more than the $99 price of a Core 125 plan document package.

More than 20 years ago, Core Documents set that baseline fee for Section 125 plan documents and we haven’t raised it since. What does that $99 buy you?

  • Knowledgeable consultants talk with you about plan design before ordering (optional free service);
  • Easy-to-use online or fax forms gather all the information necessary to ensure your plan document is drawn specifically for your plan;
  • Professional staff to review your application and contact you if anything is missing or unclear;
  • Assurance you plan document will meet the requirements of DOL, IRS, ACA, HIPAA, and COBRA;
  • The right plan document for your needs at an affordable price;
  • Peace of mind that you will be notified of any change to the law that puts your existing plan document in question;
  • Discount on first plan document update when needed; and,
  • Fast, secure electronic delivery, usually the same day.

Section 125 POP/Cafeteria plan document package to pre-tax employer-sponsored group health and supplemental benefit premiums

Deluxe binder edition

CORE 125

Section 125 Plan Document Package

Save Big with Tax-Free Group

Life & Health Insurance Premiums

$149 one-time fee in Deluxe Binder + PDF email

$99 one-time fee in PDF email only

Order Online

Our secure online ordering system accepts:

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If you prefer to order by fax, click here.

Please note:

  1. Most complete document orders placed by 3 PM will be emailed out the same day Monday through Friday. Orders placed on weekends are emailed out Monday morning.
  2. Keep in mind that December, January, and February are our busiest months of the year and documents are processed in the order they are received. The Rush Order fee ($25) simply brings your document to the top of the stack to be processed immediately.
  3. Refund Policy: Purchaser understands that goods and services provided by Core Documents, Inc. are non-refundable. Orders cancelled prior to shipping are subject to cancellation fees that are applied to the cost of goods and services provided during the review, draft, and preparation of your order.

Our friendly and knowledgeable staff are available to

answer any Section 125 Plan questions

you may have via e-mail or phone call,

Monday through Friday, 9 am to 5 pm ET:

Contact Form


[email protected]

Download the Core 125 Brochure and Forms:

Core Section 125 Premium Only Plan Document Brochure

Click to download.

Download the FREE Core Documents Section 125 Cafeteria Plan Employer Guide:

Click here to download the Core Documents Section 125 Cafeteria Plan Employer Guide.

Click to download.

Section 125 Premium Only Plan, or a POP Plan is an essential part of any employer group health insurance and ancillary benefit program.  A Section 125 plan legally allows your employees to pay their portion of medical insurance premium and other ancillary benefits premiums using pretax or tax-free dollars.

br_0001_taxfreeCore Documents provides employers with everything they need to establish an IRS and DOL compliant Section 125 Plan for only $99.00 in PDF version emailed to you as soon as your document is completed. For $149, you can receive the Deluxe Binder option that includes the PDF email version ASAP, and a printed plan document in a 3-ring binder shipped via Priority Mail. Use our convenient Section 125 Online Order Form or download a Free Section 125 Cafeteria Plan Employer Guide with Fax Order Form.

Core Documents, Inc. has been providing free consulting, affordable plan documents, and plan updates as needed for Section 125 Cafeteria Plans and Health Reimbursement Arrangements since 1997.

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