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Cafeteria Health Plans

Putting the Magic in Cafeteria Plans

When designed and executed correctly, cafeteria plans provide tax magic. They transform what would otherwise be taxable income for your employees into nontaxable benefits.

We can design a cafeteria plan that provides options and tax advantages to both your organization and your employees.

Employee Benefits Law Group can help you get the many benefits of cafeteria plans. We advise employers, their other advisors and plan fiduciaries on all aspects of cafeteria plans, including ACA compliance. By partnering with us, we can help build a cafeteria plan that allows your employees to:

  • Pay for their share of their health insurance premiums with pre-tax salary reductions.
  • Set aside pre-tax funds for medical expense reimbursements through a health flexible spending arrangement (FSA).
  • Set aside pre-tax funds for dependent care expenses.
  • Make pre-tax contributions to a health savings account (HSA), if eligible.
  • Pay disability insurance premiums on either a pre-tax or after-tax basis.
  • Receive cash in lieu of benefits (or opt-out payments) under certain conditions without being taxed if the employee does not elect to opt out.