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Section 125 Cafeteria benefits and deferral into 401k plan


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Posted

I also posted this in the 125 topic but have not gotten a response.

Hoping to get some guidance. I see in the 125 regulations that deferred compensation under a 401k plan can be a qualified benefit in a cafeteria plan. I think the issue is if the cafeterial plan has flex employer dollars available, and the employee has an election to receive the cash as taxable income or defer it under the 401k plan, how do we do this? Is it a matter of providing this benefit in the 125 plan document and then giving the employee a 125 deferral election form and a 401k election form?

Posted

Basically, yes.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Posted

If I were you, I would search for an employer who has such a plan design and see what documents they use. It might be easier to find such an employer in the public sector.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Posted

30Rock

Where is this employer located?

You might want to reply privately.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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