United Benefit Advisors Insight and Analysis Blog

Cafeteria Plans: Qualifying Events and Changing Employee Elections

Posted by: Danielle Capilla    Feb 7, 2017 9:30:00 AM

Cafeteria plans, or plans governed by IRS Code Section 125, allow employers to help employees pay for expenses such as health insurance with pre-tax dollars. Employees are given a choice between a taxable benefit (cash) and two or more specified pre-tax qualified benefits, for example, health insurance. Employees are given the opportunity to select the benefits they want, just like an individual standing in the cafeteria line at lunch.

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Topics: ERISA, group health insurance, Danielle Capilla, change in status event, cafeteria plan, Section 125 plan, pre-tax benefits, taxable benefits

Nondiscrimination Rules for Cafeteria Plans

Posted by: Danielle Capilla    Oct 13, 2016 10:30:00 AM

A cafeteria plan is an employer-provided written plan that offers employees the opportunity to choose between at least one permitted taxable benefit and at least one qualified employee benefit. There is no federal law that requires employers to establish cafeteria plans; however, some states require employers to have cafeteria plans for employees to pay for health insurance on a pre-tax basis.

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Topics: Danielle Capilla, cafeteria plan, nondiscrimination rules, benefits compliance, Section 125 plan