Who is eligible to participate in a cafeteria/flex plan?
Spouses and beneficiaries. However, a cafeteria plan may provide benefits for spouses and beneficiaries of participants. Although the spouse of a participating employee may not actively participate in a cafeteria plan (for example, a spouse may not be given the opportunity to select or purchase benefits offered by the plan), the spouse may benefit from the employee’s selection of family medical insurance coverage under the plan. Upon the death of a participant, the surviving spouse may be given the right to select among various settlement options with regard to a death benefit selected by the employee. Likewise, a surviving spouse may elect among permissible distribution options with respect to the deceased participant’s 401(k) plan that is part of the cafeteria plan. A surviving spouse is not considered to be actively participating in the plan simply because he or she has such a right of selection or election after the employee’s death. Years of employment requirement.
