A Study of Cafeteria Plans and Flexible Spending Accounts" (Washington, D.C.: Of- fice of the Assistant Secretary for Planning and Evaluation, DHHS. May 1985).Schmid S, Holner M, Mays J, Moyer E, Trapnell G. A Study of Cafeteria Plans and Flexible Spending Accounts. Washington: ...
Retirement Savings Plans:Many Cafeteria Plans offer retirement savings options such as a 401(k) plan, where employees can contribute a portion of their salary to a tax-advantaged retirement account. Flexible Spending Accounts (FSAs):FSAs allow employees to set aside pre-tax dollars to cover eligi...
The Internal Revenue Act of 1978, Section 125, establishes a wide range of flexibility on benefit programs for employers. One major complication is that some or all of the benefits under a cafeteria plan may be "voluntary," and paid for by the employee from a "flexible spending account." S...
A Section 125 Cafeteria Plan is an employer-sponsored benefit plan that allows employees to choose from a menu of taxable and non-taxable benefits. These benefits may include health insurance, dental insurance, vision coverage, flexible spending accounts (FSAs), and other qualified benefits. The te...
A Section 125 cafeteria plan is governed by Section 125 of the Internal Revenue Code and allows employees to pay for certain benefits on a pre-tax basis. These benefits can include health insurance premiums, flexible spending accounts (FSAs) for medical and dependent care expenses, dental and vi...
may pay their fair share of insurance premiums. This is normally done on a pretax basis under a premium-only plan (POP). The out-of-pocket eligible expenditures can be paid pre tax under the flexible spending account (FSA) version, which is the design of the above-described plan. ...
that were included as part of the Consolidated Appropriations Act, 2021 (the “New Law”), and also provides for an additional exception from the standard rules regarding Section 125 plan (often referred to as cafeteria plans or flexible benefits plans) election changes not found in the New ...
flexible spending accounts (FSAs) and (iii) increased health FSA carryover limits. The guidance also clarifies the relief the IRS provided earlier this year regarding first-dollar COVID-19 and telehealth services under high-deductible health plans (HDHPs). Unlike recent...
Cafeteria plans have different levels of benefits. A premium-only plan (POP) allows employees to pay their portion of insurance on a pretax basis. Theflexible spending account (FSA)version allows for out-of-pocket qualified expenses to be paid pre-tax. The full-blown plan is a consumer-driv...
The rules for aflexible spending account (FSA)differ slightly from the "use it or lose it" rules that apply to other cafeteria plan benefits. Employers are allowed to establish a grace period for their FSA, or extra time beyond the end of the year. This allows you to spend the money fr...