Premium-Only Plan

Premium-only plans allow pre-tax withholding of group insurance premiums. With a premium-only plan, your portion of insurance payments for health or dental coverage and other employee benefits are taken out of your paycheck before state and federal taxes are withheld.

By converting premiums from an after-tax expense to a pre-tax expense, your taxable income is reduced — which means more take-home pay for you.

How do I get started?
Contact your employer to see if they offer a premium-only plan. Qualified, non-taxable insurance premiums and health plan dues that can be converted to pre-tax expenses include:

• Health
• Dental
• Vision
• Group term life/AD&D
• Disability
• HSA contributions

What are the tax advantages?
Tax savings on FICA, federal, and most state income taxes.

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