What restrictions are placed on employees who participate in the Cafeteria Plan?
1. The medical insurance deduction taken on the cafeteria plan cannot be itemized on your personal tax return. 2. Once you enroll in the Cafeteria Plan, you must remain in the plan for a full plan year, and you must have all allowable insurance premiums in effect as deductions to calculate your tax savings. This means you cannot cancel or change any insurance used in the program during the plan year, except for a qualifying event (i.e., death, birth, marriage or divorce).
