Can employer contributions to a Cafeteria Plan be made pursuant to a salary reduction agreement between the participant and the employer?
A. Yes. A plan document may provide that the employer will make contributions pursuant to a salary reduction agreement under which participants elect to reduce their compensation or to forego increases in compensation and to have these amounts contributed to the employer on their behalf. (Reg. Sec. 1.125-1 Q&A-6) Q.
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