IRC 125 Explained Straight: Section 125 IRS Code Without Confusion IRC 125 sounds like something only tax attorneys enjoy talking about. Most business owners don’t. Most employees definitely don’t. But this section of the tax code quietly controls how a huge chunk of health benefits work in the real world. The short version is this: IRC 125 allows certain benefits to be paid for with pre-tax dollars. That’s it. That’s the hook....
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