My employer has just started to offer this benefit, and it is "sold" as a win-win for everyone----right! My impression so far is that it is a greater tax break for the employer than the employee. One website I looked at even said it paves the way for greater cost shifting to employees! I'm reminded of Prop 13 in California in the late seventies. I had just become a homeowner and had a vested interest in seeing California real estate tax come down, so I voted yes. But in fact 2/3 of the tax break ended up in corporations hands so what's the point if the end result after 20+ years is a steady reduction in the proportion of tax corporations pay?
Does anyone know the real story of IRC 125 (&127?) and exactly who wins and how?