WARNING: Watch This Before Signing Up for a Section 125 Tax Advantaged Plan

Have you been approached about a health benefits plan that uses tax-saving strategies to pay employers and employees more than the plan costs?
These Section 125 schemes are becoming increasingly popular. And like most things that sound too good to be true - they are. These plans are fraudulent and in direct conflict with both IRS guidelines and common sense.
Section 125 of the tax code offers employers and employees some amazing benefits - but these tax advantaged plans are abusing the rules. Watch this video to learn exactly what the IRS has already said about these plans, and why you should absolutely steer clear.

[@DillonDunford]

Could you put out a video of the Revision? Memo was put out in April. #LegalEagle

[@grahamedwardsii2712]

Hi Tyler, have you looked at the plans offered through Innovative Health Insurance Advisors

[@CommonCareVideo]

Yes we have. They have a more sophisticated approach than some of the other plans we've reviewed, but at the end of the day we feel that what they're offering is still essentially a tax mousetrap.

[@Crxsovr2k]

You’re talking about MOST Section 125 plans. Few are legitimate. But after looking over some with multiple tax attorneys, some are 100% compliant. Be careful about trashing someone’s business because there are 3 total that are compliant and have been in business for years and none of their plans have been closed by the IRS. I use this and it’s been extremely helpful with my businesses.

[@CommonCareVideo]

Which 3 are compliant?

[@Crxsovr2k]

@@CommonCareVideo the ones who who stay up to date with current IRS regulations and tax laws. It’s just like HR compliance, laws change every day. Good, reputable businesses keep up to date with these things so they don’t put themselves and their clients at risk. I’ve been in business with 2 of them for 9+ years. Help reduce my turnover rate and give my employees needed benefits.

[@CommonCareVideo]

@@Crxsovr2k what are the names of the two you've worked with? We'd love to see a solution in this space that is actually compliant.

[@Crxsovr2k]

@@CommonCareVideo Oh, I’m glad! That’s great. Why would you love to see that?

[@CommonCareVideo]

@@Crxsovr2k because if there was a viable solution we'd gladly sell it. Your dancing around the question and not giving a straight answer makes me wonder what you're up to though...

[@ThePahndafoetoe]

I’m a warehouse worker, I get paid weekly, 550 after taxes. They take 260 every week

[@allenandmiriam]

Have you looked at the Champ Plan?

[@CommonCareVideo]

Yes we have. They're one of the companies that is doing this.

[@errlluminati1686]

So you would say Champ Plan is fraudulent?

[@CommonCareVideo]

@@errlluminati1686 yes

[@grahamedwardsii2712]

@@CommonCareVideo Have you looked at iM4 Health ?

[@DillonDunford]

Could you put out a video of the Revision? Memo was put out in April. #LegalEagle

[@bennett151]

I'm curious of his response on that memo as well considering the first sentence says this is not precedent.