What benefits constitute qualified benefits and what benefits constitute cash under a cafeteria plan?
A-4: (a) Qualified benefits — (1) In general. A benefit is a qualified benefit under a cafeteria plan if the benefit does not defer the receipt of compensation and the benefit is not includable in an employee’s gross income by reason of an express provision of Chapter 1 of the Code. In the case of insurance-type benefits, such as benefits provided under accident or health plans (sections 106 and 105) and group-term life insurance plans (section 79), the benefit is the coverage under the plan. (2) Items that constitute qualified benefits — (i) Accident or health plans. Coverage under an accident or health plan is a qualified benefit to the extent that such coverage is excludable from income under section 106. Thus, for example, coverage under a long-term disability plan and coverage under an accidental death and dismemberment policy may be qualified benefits. (ii) Group-term life insurance. Group-term life insurance coverage that is excludable from gross income under section 79 and gr
