Module 9 Flashcards
(19 cards)
Another term for a
flexible benefits or
cafeteria plan
Section 125 plan
The IRS section that
stipulates whether a
health plan is
qualified or not
Section 125
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-favored basis
The federal
income tax
determination that
governs the
taxability of
benefits
Doctrine of
constructive receipt
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
contributions
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 tax favorable
status
Qualified
