POP Administration

What we do

SBA's Premium Only Plan oversight and administration that meets all the compliance requirements. Annual checklists are included to remind clients of what is required each-and-every year. And, while the cost is minimal, the benefit is great.

Why SBA for POP Administration?

Sound Benefit Administration provides a Section 125 Premium Only Plan that meets all  compliance requirements.

Our knowledgeable staff can help with non-discrimination testing and distributing required paperwork to participants. We help employees understand the benefits and cautions of pre-taxing their premiums allowing them to make an informed decision before electing or waiving this benefit.


Is your POP in compliance?

While a Premium Only Plan may be a generally simple plan to administer when compared to other tax-savings plans, there are certain compliance requirements that must be met. For example:

  • Is there a plan document?
  • Is non-discrimination testing on the plan performed annually?
  • Is a Summary Plan Description distributed to each employee participating in the plan?
  • Do employees complete election forms to participate or waive enrollment in the plan?
  • Do participants complete Change of Status forms when they change the amount they have deducted mid-plan year to conform to qualifying change-of-status requirements?

If you cannot answer yes to these questions, your plan will not pass a Department of Labor audit.


For ongoing POP administration, SBA provides:

Set Up:

  • Plan Document
  • Adoption Agreement
  • Summary Plan Description
  • Discrimination Testing
  • Election forms
  • Bookkeeper instructions
  • Checklist for compliance
  • 3-Ring Binder to keep archived plan years organized

Annual:

  • Plan Documents ONLY if material changes are made in Section 125 Premium Account regulations
  • Annual renewal checklist
  • Non-discrimination tests updated with indexed amounts
  • Election forms

Our latest subject matter articles