A cafeteria plan,also known as a flexible benefit plan,is an employer-sponsored plan that gives the employee a choice of selecting either cash or one or more qualifying nontaxable benefits.

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A cafeteria plan allows employees to choose between receiving cash or selecting from a range of designated benefits, such as health insurance, dependent care, or retirement savings. These benefits can be deducted from the employee's pre-tax income, resulting in lower taxable income for the employee and reduced payroll taxes for the employer.

A Cafeteria Plan,also Known as a Flexible Benefit Plan,is an Employer-Sponsored