Its cheaper for me to buy family plan health ins thru wifes employer, can I still do sect 125 with my employ ?

Question

My wife and I recently had a baby, I work for a small family owned company in Atlanta Ga and I live in NY. It is about $200 per month cheaper for me to buy Family plan heatlh coverage for us if I go through my wifes employer even though she works part time.

I asked my company if they could pay me what I pay in pre-tax dollars for insurance purposes and they said no. I also offered to let them pay my wife's insurance company direct and they still said no...this without checking with their CPA or payroll company.

Does anyone know if it is possible to be paid in pre-tax dollars

for your heatlh insurance premiums if you do not use your companies health care plan ?

Answer 1

No, when the company pays your health insurance premiums with your pre-tax dollars they are doing it through the regulations of Section 125 and Section 105 of the Internal Revenue Code.

When your company withholds this money and doesn't make the otherwise legally required federal, state and social security tax withholding, it becomes their legal responsibility to pay it to a qualify benefit plan that they are offering its employees. It cannot be used for any other purpose.