Can You Help Me Understand The Cafeteria Plan My Employer Offers?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 16, 2021

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A Cafeteria Plan gives the employee a range of options about the types and levels of benefits, as opposed to having these decided by the employer and the insurer. Under a cafeteria plan, the employee may choose among 2 or more benefits consisting of cash and qualified benefits (such as health insurance, optical plan, dental plan, short-term disability coverage, life insurance, or additional sick days or vacation time). The employee decides which benefits fit his/her needs and utilizes the benefits selected.

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