Cafeteria plans add flexibility to benefit programs while keeping after-tax costs down

Article Abstract:

The tax planning considerations and procedural requirements of cafeteria employee benefit plans are discussed. Cafeteria plans must have written documentation, and meet non-discrimination requirements. The IRS also requires employers to file an annual report for cafeteria plans. Cafeteria plans require more administrative work than other benefit plans, but cafeteria plans can help employers to provide benefits in a cost-effective manner.

Tax accounting, Accounting and auditing, Cafeteria benefit plans

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Proposed regulations on disparity in qualified plans issued

Article Abstract:

Recently released IRS Proposed Regulations concern permitted disparity in employer contributions to, and employer-derived benefits under, qualified plans. These rules relate to plans that might discriminate in favor of highly compensated employees, and are effective for plan years beginning after 1988. Their impact on defined contribution plans, defined benefit plans, combining plans, and final pay are discussed.

United States. Internal Revenue Service

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