Question

Section 125 plans have all but which one of the following features?

(a) employees can convert a portion of taxable wages into nontaxable dollars to pay for specific benefits

(b) employees can receive any dollars not spent at end of year and pay tax on these dollars

(c) nontax dollars can be spent to pay for health-care insurance premiums

(d) elections must be made before beginning of plan year

Answer

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