The Team Behind This Resource
Section 125 Savings is an independent educational and referral resource. The financial and legal claims on this site have been developed and reviewed by the following subject matter experts.
David Newman
- Eagle Scout — Boy Scouts of America (earned by fewer than 4% of all scouts)
- San Pedro, CA — Harbor Area local
- Background in filmmaking and entrepreneurship
- Verified every compliance document personally before putting his name on this resource
- Referral partner, not a licensed tax professional
David Newman is the founder of Section125Savings.org and a San Pedro, California local. An Eagle Scout with a background in filmmaking and entrepreneurship, David discovered Section 125 while researching legal payroll tax reduction strategies for Harbor Area businesses.
Before launching this resource, David reviewed the HitesmanLaw legal opinion letter and the CBIZ compliance documentation personally — and verified the math against published IRS FICA rates. He only put his name on this after confirming the program was exactly what it claimed to be.
David's role is to educate employers about Section 125, help them understand if they qualify, and connect them with the licensed specialists who handle implementation. He is a referral partner, not a licensed tax professional. Every analysis is conducted by a licensed CPA and ERISA attorney — David makes the introduction.
Virginia Fish, CPA
- Certified Public Accountant — California Board of Accountancy · Credential ID 144733
- BBA Accounting, California State University Long Beach
- Specialist in Section 125, payroll tax reduction, and employer benefits programs
- Founded and operates an employer benefits consulting firm
- Bilingual: English and Spanish
- Reviews all financial and tax content on this site for accuracy and compliance
Virginia Fish is a California-licensed Certified Public Accountant with a background in tax, financial reporting, and financial planning. She holds a BBA in Accounting from California State University Long Beach and is licensed by the California Board of Accountancy.
Virginia specializes in employer payroll tax reduction strategies and Section 125 program compliance. She has spent years helping employers find legal programs and tax structures that most business owners have never heard of — including the Progressive Health Strategy Plan structure that underlies the program described on this site.
Virginia reviews all financial and compliance content published on Section125Savings.org for accuracy. The credit line “Content reviewed by Virginia Fish, CPA” that appears throughout this site reflects her active review of the financial claims, savings calculations, and compliance representations made here.
Darcy L. Hitesman, J.D.
- Super Lawyer every year since 2000
- AV-rated Martindale-Hubbell since 1998 (highest possible peer review rating)
- 35+ years ERISA and employee benefits law experience
- Co-author: ERISA Compliance for Health & Welfare Plans (Thomson Reuters, annually since 1999)
- Speaker: Employers Council on Flexible Compensation (ECFC) Annual Convention every year since 1999
- 20+ published articles including Health Benefits Planner
- JD cum laude, University of Minnesota Law School, 1987
- Named Top Woman Lawyer, Minnesota Journal of Law & Politics
- 40 Under 40, Minneapolis/St. Paul Business Journal
- Member: ABA, Minnesota State Bar, SHRM, ECFC Technical Advisory Group
Darcy L. Hitesman is the founder of HitesmanLaw P.A., located in Minneapolis, Minnesota. She has more than 35 years of experience as an Employee Benefits attorney, with deep expertise in ERISA, the Internal Revenue Code, HIPAA, ACA, COBRA, and Section 125 cafeteria plans.
She co-authors the ERISA Compliance for Health & Welfare Plans manual published annually by Thomson Reuters — the definitive national reference for employee benefits compliance professionals. She has been a featured speaker at the ECFC Annual Convention every year since 1999 and is a frequent speaker at national legal and HR conferences.
In May 2025, HitesmanLaw P.A. issued a formal legal opinion letter reviewing the ACA Solutions Preventive Care Program — the Section 125 structure described on this site. After reviewing the program documentation, IRS statutory and regulatory guidance, and applicable law under IRC Sections 105, 106, 125, and 213(d), ERISA, ACA, HIPAA, and COBRA, Ms. Hitesman concluded:
“In this firm's opinion, the Program described below satisfies applicable IRS requirements.”
What HitesmanLaw Reviewed and Found
- Date: May 5, 2025
- Documents reviewed: ACA Solutions Preventive Care Plan, ACA Solutions Cafeteria Plan, Client Services Agreement
- Laws reviewed: IRC Sections 105, 106, 125, 213(d), IRS Rev. Rul. 69-154 Situation 3, ERISA, ACA, HIPAA, COBRA, Section 125 nondiscrimination requirements
- Key finding: Program satisfies applicable IRS requirements
- ACA integration confirmed: employees must be covered under ACA-compliant employer-sponsored group health plan
- ERISA compliance: confirmed
- HIPAA compliance: confirmed
- COBRA compliance: confirmed
- Legal protection: $500,000 per enrolled employer, $10,000 per participant — insurance-backed
- Tax treatment analog: IRS Rev. Rul. 69-154 Situation 3 cited as the applicable framework
Why IRS Revenue Ruling 69-154 Matters
Revenue Ruling 69-154 is the foundational IRS ruling establishing the federal tax treatment of employer-funded health and welfare benefits as excludable from employee gross income under IRC Sections 105 and 106. Situation 3 of the ruling addresses the specific tax mechanics that the Section 125 cafeteria plan structure relies on — and is the analog Ms. Hitesman cites in her May 2025 opinion to confirm the program operates within the framework Rev. Rul. 69-154 established.
The ruling has stood unchallenged by Treasury or the IRS for more than 56 years and remains the operative authority for the underlying exclusion treatment, supplemented by IRC Section 125 (cafeteria plans) and the corresponding Treasury Regulations.
This site is an independent educational and referral resource. Content is reviewed for accuracy by the professionals listed above. David Newman is a referral partner, not a licensed tax professional. All savings estimates are based on published IRS FICA rates. Workers' Compensation savings are estimates. Consult your own CPA or attorney before implementing any tax strategy.