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If ERISA only applies to pension and welfare plans and a Cafeteria Plan is a Fringe Benefit Plan, why is there an ERISA Technical Release 92-01 on the matter of wether contributions for cafeteria plans must be held in trust??

Posted

Because the cafeteria plan contributions (i.e., the employee pre-tax contributions) are used to “buy” coverage under an ERISA plan (e.g., a medical plan).

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