Which of the following compares the nontaxable benefits provided to key employees to the nontaxable benefits provided to all employees? (Cafeteria Plans under Section 125)

Question

Quizplus · Accepted Answer

Concentration compares the nontaxable benefits provided to key employees with the benefits provided to all employees. This is because Cafeteria Plans under Section 125 allow for non-discrimination testing to ensure that benefits are distributed fairly among all employees and not just key personnel. Eligibility refers to the criteria for participating in the plan, while concurrent and prospective reviews relate to different types of performance evaluations and are not relevant to this question.

Which of the Following Compares the Nontaxable Benefits Provided to Key