Section 125 Premium Credit
Health insurance premiums credit available under Section 125 Plans
Employers must provide an annual report to employees detailing monthly premium charges.
Beginning with insurance premiums paid in January 2009, certain employees may request an annual statement that shows the amount of health insurance premiums paid from the employer’s Section 125 Plan for each month of the year. Eligible employees include those who:
• Are in the first 12 months of participation in the Section 125 Plan, and
• Have not had coverage under the employer’s health care plan during the 12 months prior to their participation in the Section 125 Plan.
Employees must submit a written request for the statement and may only request it once per year.
This requirement is part of Minnesota’s new Health Insurance Premiums Credit (Minnesota Statute 2008, Section 290.0678), which provides certain individuals with a tax credit. Eligible employees include those who:
• Have not had coverage under a health care plan for at least one year, and
• Have a household income between 275% and 300% of federal poverty guidelines if the individual has dependents, or
• Have a household income between 200% and 275% of federal poverty guidelines if the individual has no dependents.
Eligible individuals will receive a tax credit equal to 20 percent of the health insurance premiums paid from a Section 125 Plan during the first 12 months in which the individual participates in the Section 125 Plan.
For More Info
• Contact your RJF Employee Benefits team member or call 763-746-8000 and ask for an Employee Benefits team member.
• Contact Kari Rosand Scanlon, RJF HR Consultant, at 763-746-8219 or scanlonk@rjfagencies.com.
Disclaimer
This document is provided for informational and educational purposes only. It is not intended to, nor does it, provide any form of legal advice regarding the subject matter of the documents. You should not take any actions on the basis of this document, but instead should seek legal advice regarding your issues.
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