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Understanding Types of Cafeteria Plans: Key Questions

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Understanding Types of Cafeteria Plans: Key Questions

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What is a Cafeteria plan?

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Wednesday Wisdom
Wednesday Wisdom
United States

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Understanding Types of Cafeteria Plans: Key Questions
 

Understanding Types of Cafeteria Plans: Key QuestionsOnline version

What is a Cafeteria plan?

by Wednesday Wisdom
1

All types of cafeteria plans are governed by Section 125 of the Internal Revenue Code.

2

Flexible Spending Arrangements (FSAs) are a type of cafeteria plan.

3

Employers are required to have a written cafeteria plan document for IRS compliance.

4

Employers can have separate plan documents for a POP and an FSA

5

A Premium-Only Plan (POP) is a type of cafeteria plan.

6

An FSA can be a component (feature) within a premium payment plan (e.g., POP)

7

Premium Payment Plans (e.g., POP) are the most complex type of cafeteria plan.

 
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