Cafeteria Benefits Overview

Cafeteria Plans are company benefit programs that allow employees to use pre and post tax dollars to pay certain out-of-pocket expenses. Cafeteria Plans are also called 125 plans because they are defined in the section 125 of the Internal Revenue Service Code. They are also so-called because employees can pick and choose from a menu of benefits customized by the employer. The choices most-often offered are premium conversion and flexible spending arrangements.