Cafeteria plans, which allow employees to pay tax-free for qualified benefits, are subject to Internal Revenue Code (IRC) Section 125 nondiscrimination rules. To retain its tax advantages, a cafeteria plan must pass certain tests to ensure that it does not discriminate in favor of certain highly-compensated or key employees. Additional nondiscrimination rules and tests apply to self-insured health plans – including health flexible spending accounts – as well as dependent care assistance programs and other qualified benefits paid for under a cafeteria plan.
This webinar provides a practical overview of the IRC nondiscrimination rules, explains the applicable tests, discusses common pitfalls, and presents tips to help plan sponsors achieve compliance with the rules.
This event was preapproved by the HR Certification Institute® for 1 HRCI® recertification credit.