Section 125 Plan Administration

A Section 125 Plan is a valuable tool for both you and your employees. But, the upkeep and compliance is often a burden. If you’re like other employers we work with, it’s likely been a while since you’ve updated your Section 125 Plan document. Did you know that changes to your benefit offerings need to be reflected on your plan document annually?

With over 50 years of experience working in your industry, we can help create and maintain your Section 125 Plan and handle employee education and ongoing care.

Setting Up Your Plan

The first step to having a compliant Section 125 Plan is your plan document. American Fidelity will work with you to capture all the details in your benefits offering and help you properly implement and maintain your Section 125 Plan, including the plan document. American Fidelity will also:

  • Provide a sample document containing your specific plan information,
  • Ensure rules are established and FSA requirements are documented in your plan,
  • Collect signed election forms for each employee that shows the benefits elected under the plan or that the employee is waiving participation, and
  • Offer web-based resources, including an administration guide, a monthly newsletter with compliance and regulatory updates, and an employer blog.

Helping You Keep Compliant

We can assist your Human Resources department by keeping track of plan changes and new regulations. We also have in-house employee benefits attorneys who specialize in understanding regulations.

Learn More About Our Compliance Services 

Plan Document Updates

Annual changes to your benefits program can result in the need to update your plan document. We’ll review it on an annual basis to ensure it is up to date.

FSA Adjudication

We follow the law to help prevent you from being audited and fined. Read more about providing documentation for claims.

Non-Discrimination Testing

We'll provide testing worksheets and guidance to help you demonstrate the Section 125 Plan is not providing a greater benefit to highly compensated individuals than to non-highly compensated individuals. View our non-discrimination testing forms here. 

Employee Education

We know that your HR department doesn’t have the time or resources to educate each employee individually. Through customized education and year-round communication, we'll help your employees understand their benefits, leading to participation in your Section 125 Plan.

Learn More About Our Education Strategy 


If you would like assistance creating and maintaining your Section 125 Plan, American Fidelity can help.