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What is a cafeteria plan? Flex Account. One of the most common cafeteria plans is a flex account, or flexible spending account (FSA). ... POP Plan. Next is a Premium Only Plan (POP). ... Dependent Care Account. Finally, the last type of cafeteria plan is a Dependent Care flexible spending account.
A flexible spending arrangement (FSA) is a form of cafeteria plan benefit, funded by salary reduction, that reimburses employees for expenses incurred for certain qualified benefits. An FSA may be offered for dependent care assistance, adoption assistance, and medical care reimbursements.
What is a cafeteria plan? Flex Account. One of the most common cafeteria plans is a flex account, or flexible spending account (FSA). ... POP Plan. Next is a Premium Only Plan (POP). ... Dependent Care Account. Finally, the last type of cafeteria plan is a Dependent Care flexible spending account.
A cafeteria plan is a separate written plan maintained by an employer for employees that meets the specific requirements of and regulations of section 125 of the Internal Revenue Code. It provides participants an opportunity to receive certain benefits on a pretax basis.
Flexible Spending Accounts (FSAs), governed by Internal Revenue Code (IRC) Section 125, allow you to have pre-tax payroll deductions for certain medical and dependent care expenses. Section 125 also permits your insurance premiums to be taken on a pre-tax basis.
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A flexible spending account (FSA) is a cafeteria plan where employees can get reimbursed for certain types of qualified expenses. The plan is usually funded by voluntary pre-tax salary reductions, but can also include employer contributions.
What is a 401(k) cafeteria plan? A 401(k) cafeteria plan allows employees who are participating in their employer's 401(k) plan to also choose additional types of benefits from a smorgasbord of options on a pretax basis.
A cafeteria plan, also known as a section 125 plan, is a written plan that offers employees a choice between receiving their compensation in cash or as part of an employee benefit.
Cafeteria Plans are an employer-sponsored benefit that lets employees pay certain qualified medical expenses \u2013 such as health insurance premiums for medical, dental, and vision coverage \u2013 on a pre-tax basis. They are sometimes called Section 125 Cafeteria Plans.
A Section 125 plan typically lets employees use pretax money to pay for health insurance premiums (medical, dental, vision). Other options include retirement deposits, supplemental life or disability insurance, Health Savings Accounts, and various medical or dependent care expenses.