Pre-tax Benefit Solutions


Set up pre-tax benefits with Alerus

Everyone benefits when a practice establishes a pre-tax method for employees to pay insurance premiums or save to pay for qualified medical, vision, dependent care, and similar expenses. To set up these pre-tax accounts, an employer must establish a Section 125 cafeteria plan using a third-party administrator. The MDA endorses Alerus to help members establish and administer these plans, including premium-only plans. Alerus can provide the various legal plan documents, as needed, to establish these plans. The company will also administer the plans on your behalf.

Pre-tax benefit accounts include health savings accounts, health reimbursement accounts, flexible spending accounts, dependent care accounts and more. Alerus can help you determine which options meet your needs, develop plan documents, enroll your employees and administer these plans for your practice.

Pre-tax accounts benefit employees by allowing them to pay for necessary expenditures before taxes are withheld from their earnings. This helps employees better afford such expenses, as the impact on their take-home pay is less than paying with after-tax dollars. And the resulting lower gross pay for employees reduces tax withholdings for the employer, saving them 7.65% in payroll taxes for every dollar allocated to an eligible pre-tax account.

Efficient. Simple. Reliable. That’s what you want in a Section 125 Plan administrator.

For help with Section 125 plans, contact Health & Welfare Sales Consultant Paula Ellermann, at, or call her at 303-481-1577. Be sure to identify yourself as an MDA member. Download flyer >




The MDA receives royalties when members use the product or services described above.