cafeteria plan


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Related to cafeteria plan: cafeteria benefits

ca·fe·ter·i·a plan

(kafe-tē'ri-a plan)
Employee benefit plan that allows a choice between alternative nontaxable benefits.
References in periodicals archive ?
A cafeteria plan is the only way for employers to offer employees a choice between taxable and nontaxable benefits, "without the choice causing the benefits to become taxable," the 1RS says.
125 cafeteria plan, such as whole life insurance (in contrast to group term life insurance) or a gym membership.
Related: Proposed cafeteria plan regs provide discrimination test
125 cafeteria plan but were paid to a third party by the employer, not by the employees themselves.
Unlike the individual exchanges, the federal subsidy is not available in the SHOP exchanges, but employers can use cafeteria plans to allow employees to pay their portion of the premium on a pre-tax basis.
There are four different menu options available through the BASE 125 Cafeteria Plan.
The mechanics of the cafeteria plan works much like a cafeteria that serves food as mentioned above.
There are several carriers that will assist businesses in establishing Section 125 Cafeteria plans at no cost.
Tax law in general, and cafeteria plan rules in particular, are complex, subject to differing interpretations, and frequently updated with new rulings.
This technical but creative approach would allow insurers to combine what is known as "list-billing" with a Section 125 "cafeteria plan." However, these state-level reform attempts have failed to gain significant traction because state small-group reform laws and federal restrictions on medical underwriting cloud the legality of tax-sheltered list-billing.
Under this safe harbor, a cafeteria plan and the specified qualified benefits will be treated as meeting the specified nondiscrimination rules if the plan satisfies minimum eligibility, participation and contribution requirements.
A cafeteria plan (or "flexible benefit plan") is a written plan in which all participants are employees who may choose among two or more benefits consisting of cash and "qualified benefits." With certain limited exceptions, a cafeteria plan cannot provide for deferred compensation.