What qualified benefits are permitted in a cafeteria plan?
A. Only the benefit options listed in Internal Revenue Code section 125 and the regulations thereunder may be included as qualified benefits under a cafeteria plan. These include accident and health insurance coverage (all types of medical, dental, vision, prescription, long term disability, short term disability, accidental death and dismemberment, or health care flexible spending accounts), group term life insurance up to $50,000, dependent care flexible spending accounts, 401(k) plans, vacation buying and selling, and adoption assistance flexible spending accounts.
