Section 125 Plan: What Employees Need to Know

Think Section 125 plans are too complex? Think again. We debunk the myths around The CHAMP Plan and provide the facts employees need to know. (Busting common myths and objections about Section 125 plans.)

❌ Myth #1: The CHAMP Plan is Too Complicated to Understand

Fact: The CHAMP Plan is easier to navigate than you think.

One of the most common myths about Section 125 plans like the CHAMP Plan is that they’re too complex for employees to manage. In reality, these plans are designed to be straightforward and accessible. The CHAMP Plan provides a flexible way for employees to use pre-tax dollars for various benefits, such as healthcare premiums, dependent care, and more.

Once set up, employees can make simple elections through their HR portal, and the savings kick in automatically. With the right employee benefit education, navigating the CHAMP Plan is a breeze—and it results in real, tangible savings on your taxable income.

✅ Myth #2: The CHAMP Plan Only Works for Healthcare Benefits

Fact: The CHAMP Plan covers more than just healthcare.

A common misconception about Section 125 plans like the CHAMP Plan is that they only offer healthcare-related benefits. While healthcare is a huge benefit, it’s far from the only one.

The CHAMP Plan can also cover a wide variety of benefits, such as:

• Dependent care (childcare and eldercare expenses)
• Commuter benefits (parking, public transportation, and more)
• Voluntary benefits (life insurance, disability insurance, etc.)

This broad range of benefits helps employees make the most of their pre-tax dollars, giving them the flexibility to choose the benefits that suit their lifestyle.

❌ Myth #3: Employees Lose Benefits if They Don’t Use Them Right Away

Fact: The CHAMP Plan is flexible.

One of the most confusing myths about Section 125 plans is the fear that unused benefits are “lost” at the end of the year. While this may be true for some types of flexible spending accounts (FSAs), The CHAMP Plan is designed to give employees flexibility.

With the CHAMP Plan, you can select your benefits for the year, and if you don’t use them all by year’s end, they often roll over or can be adjusted during the open enrollment period. This flexibility ensures that employees are never stuck with unused benefits they don’t want or need.

✅ Myth #4: The CHAMP Plan Isn’t Worth It for Employees With Minimal Healthcare Needs

Fact: The CHAMP Plan provides tax savings—no matter your healthcare needs.

Many employees think the CHAMP Plan is only beneficial for those with major healthcare expenses. This is simply not true. Even if you don’t have a lot of medical bills, you’re still benefiting from tax savings.

For example, by paying for your healthcare premiums and other eligible benefits with pre-tax dollars, you reduce your taxable income, which means you’re paying less in taxes—plain and simple. So even if your healthcare needs are minimal, the savings on other expenses still add up.

❌ Myth #5: The CHAMP Plan Requires You to Commit to Specific Benefits

Fact: You can customize your benefits package.

A common myth is that once you choose a set of benefits under Section 125, you’re locked into them for the whole year. However, The CHAMP Plan allows you to make adjustments during the open enrollment period or if a qualifying life event occurs, such as a marriage, the birth of a child, or a change in your health status.

This flexibility means that you can adjust your plan based on your evolving needs, ensuring you always have the right coverage for your situation.

✅ Myth #6: The CHAMP Plan Only Works for Large Companies

Fact: The CHAMP Plan is great for businesses of all sizes.

Many employees believe that Section 125 plans like the CHAMP Plan are only available to large companies. However, small and mid-sized businesses can also benefit from implementing these plans.

The CHAMP Plan is scalable and adaptable, making it accessible for companies of all sizes. Whether you’re working for a small startup or a large corporation, you can take advantage of this flexible and tax-efficient benefit package.

🧩 Understanding The CHAMP Plan: The Facts You Need

The CHAMP Plan is an incredibly valuable tool that offers numerous employee benefits, from healthcare savings to commuter benefits. While myths and misconceptions exist, debunking these myths can help employees and employers take full advantage of this tax-saving benefit.

Busting the myths:

• It’s not too complicated—in fact, it’s designed to be easy and accessible.
• It’s not just for healthcare—you can use it for a range of benefits.
• Unused benefits don’t go to waste—the plan offers flexibility and rollover options.
• It’s valuable for everyone, not just those with big healthcare needs.
• It’s customizable—you’re not locked into one set of benefits.
• It’s for businesses of all sizes, not just large corporations.

Now that you know the facts, you can confidently take advantage of the CHAMP Plan and enjoy the benefits it has to offer. So, don’t let myths hold you back—start saving with The CHAMP Plan today!