Module 9 Flashcards
Another term for a flexible benefits or cafeteria plan
Section 125 plan
A cafeteria plan ensures that employers can maximize the value of benefit dollars while avoiding _____________.
Spending $ on duplicated or unneeded benefits
Flexible benefit plans allow employees to contribute toward benefits on a ____________________.
tax flavored basis
The federal income tax determination that governs the taxability of benefits
doctrine of constructive receipts
Section 125 was added to the Internal Revenue Code to clarify this act
Revenue Act of 1978
This benefit is the exception to the Section 125 special rule prohibiting deferral of compensation
HSA contributions
The two types of benefits that cannot be offered in a cafeteria plan
life insurance and long term care insurance
Cafeteria plan benefits elections must be made prior to the ___________
Beginning of the plan year
This type of benefit may be reduced by participating in a cafeteria plan
Social Security
Employers offering benefits through a cafeteria plan save from not having to pay __________.
FICA or FUTA contribution
This type of plan has no employer contributions and is offered to allow employees to have insurance available on a tax-favored basis
Premium conversion plan
A type of cafeteria plan (with a use-orlose component) that allows employees to set aside pre-tax $ for health or dependent care
Flexible Spending Account
The allowable time for a grace period with Flexible Spending Accounts
2.5 months
Another name for a full flex plan
Full choice plan
A method of smoothing out benefit inequities used in the valuation of flexible benefits plans
Credits
Certain benefits funded through a cafeteria plan may be subject to ERISA because they are considered to be _______
Welfare benefit plans
For a cafeteria plan to be eligible for favorable tax treatment, it must allow participants to choose between at least this many benefits, including cash:
Two
Terminology that means a plan has taxfavorable status
Qualified
The IRS section that stipulates whether a health plan is qualified or not
Section 125
Section 125 plan
Another term for a flexible benefits or cafeteria plan
Spending $ on duplicated or unneeded benefits
A cafeteria plan ensures that employers can maximize the value of benefit dollars while avoiding _____________.
tax flavored basis
Flexible benefit plans allow employees to contribute toward benefits on a ____________________.
doctrine of constructive receipts
The federal income tax determination that governs the taxability of benefits
Revenue Act of 1978
Section 125 was added to the Internal Revenue Code to clarify this act
