Cafeteria/Section 125 Plans

Cafeteria plans fall under the jursidiction of IRS Code Section 125. These plans allow employees to set aside funds in Flexible Spending Accounts (FSA) on a pre-tax basis to pay for medical, dental, and vision-related expenses.

Flexible Spending Accounts allow the employee to set aside pre-tax dollars for the plan year to compensate for things such as health insurance premiums, co-pays, prescription drug costs, orthodontic and other dental costs, etc.

Cafeteria plans must be offered on a non-discriminatory basis, and are subject to tests based on the elections of the participants combined with any contribution by the employer.