Section 125 - Pretax vs. Post-tax Section 125 applies to active employees only. If you enroll for medical, dental or supplemental insurance coverage, you must choose between paying with pretax or post-tax dollars. Below are some points to consider as you make your decisions. Pretax Deductions If you choose to pay for coverage with pretax deductions:
Post-tax Deductions If you choose to pay for coverage with post-tax deductions:
For Example Below is an example of how you may benefit from paying for benefits with pretax dollars. The example is based on a married couple with two withholding allowances in 2004 .
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