Which of the following statements is true about cafeteria plans?
A)Modular cafeteria plans are more flexible than the core plus cafeteria plans.
B)Long-term care is included in cafeteria plans, while a 401(k) plan is excluded.
C)If there are not enough credits, the employee can pay the additional cost through payroll deduction on a pretax basis using a modular conversion plan.
D)The flexible spending account is part of a cafeteria plan.
E)A core plus cafeteria plan requires less administrative cost than a modular cafeteria plan.

Question

Quizplus · Accepted Answer

Flexible Spending Accounts (FSAs) are indeed a component of cafeteria plans, allowing employees to use pre-tax dollars to pay for eligible healthcare expenses, which demonstrates the flexibility and tax-saving aspect of cafeteria plans.

Which of the Following Statements Is True About Cafeteria Plans