How do § 125 Cafeteria Plans stay in compliance?
A cafeteria plan will be afforded special tax treatment as long as it maintains a qualified status. In order to remain qualified, your plan must meet a host of requirements set by the Internal Revenue Service and the Department of Labor. The stipulations cover the areas of minimum coverage and minimum participation, eligible expenses, non-discrimination, top-heavy status, contribution limits, and taxation. BSI takes pride in our expertise and constantly keep abreast of current legislation. We keep you informed of the changes in the laws affecting cafeteria plans to ensure your plan maintains its qualified status. Our services satisfy annual reporting requirements, participant disclosure requirements, document and amendment essentials, annual non-discrimination and coverage testing, as well as additional qualification fundamentals.
