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What is a Cafeteria Plan?
A Cafeteria plan is a tax-free benefit program which is allowed under Section 125 of the Internal Revenue Code. This was enacted by Congress to help lower your cost by making these expenses tax-exempt from Federal, State and FICA taxes. The plan allows participating individuals to pay for certain expenses with tax-free dollars. Depending on your plan design, eligible expenses could include certain employer deducted insurance premiums, out-pocket-medical expenses, dependent care expenses and certain eligible insurance premium that are not payroll deducted. Once the plan begins you will not be allowed to make changes to your election unless a status change occurs. Your plan design will determine which benefits are offered under your plan. Please click on the following links for more information.
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