Premium Conversion Plan (pretax)

Premium Conversion (Pretax) is a State of Iowa benefit that allows all employees who work at least 1040 hours/year to pay their share of health, dental, and supplemental life insurance while saving money on income and FICA taxes. This means that insurance premiums are deducted from your salary before taxes are calculated*.

Example:
If your monthly premium for medical, dental, and life insurance is $150/month and your tax rate is 28%, you would be saving $42/month ($504/year) in taxes.

*Please note that since you do not pay FICA on your insurance premiums, those amounts are not included in your wages for Social Security calculations.

For more detailed information review the Plan Document .