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