Under many cafeteria plans,employees make premium contributions with pre-tax dollars.Then they use money from the salary reduction to purchase group health insurance or dental insurance.This type of cafeteria plan is called a

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The plan described in the question where employees use pre-tax dollars to purchase group health or dental insurance is called a premium conversion plan. Health reimbursement arrangement plans (A) involve the employer reimbursing employees for health expenses, while full-choice plans (C) allow employees to choose from a wider range of benefits beyond just insurance. Flexible spending account plans (D) allow employees to set aside pre-tax dollars for eligible healthcare expenses, but do not specifically involve premium contributions for insurance.

Under Many Cafeteria Plans,employees Make Premium Contributions with Pre-Tax Dollars