What benefits are provided under the Section 127 Plan? | Tax Services | Kent State University

What benefits are provided under the Section 127 Plan?

The Section 127 plan is intended to provide favorable tax benefits only. The plan will exclude from taxation graduate-level courses provided by the University to eligible employees, up to a maximum of $5,250 per calendar year. Although most educational benefits currently available to employees are already exempt from taxation under other provisions of the Internal Revenue Code (IRC), the Section 127 plan provides relief from taxation for those employees whose graduate-level educational benefits are not covered under other Code provisions.