What Counts As A Section 125 Qualifying Event, Anyway?
Okay so before we get into qualifying events, let's back up a second. IRC Section 125 is basically the tax code section that lets employers offer what's called a cafeteria plan. The name sounds weird, I know, but it's just a fancy way of saying employees get to pick their benefits with pre-tax dollars. Health insurance premiums, FSA contributions, dependent care, stuff like that. The money comes out of your paycheck before taxes hit it, which saves everybody a little cash. Here's the thing though. Once you make your elections during open enrollment, you're kind of locked in for the year. The IRS doesn't want people flip flopping their benefits every other month just to game their taxes. So they built in some rules. And those rules are called qualifying events. The Whole Point Of A Section 125 Qualifying Event A section 125 qualifying event is basically an exception to the "you're locked in" rule. Life happens, right? You get married, you have a ki...