Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Plan Compliance Analyst (Administrator)

RPA
(Remote)

RPA logo

Pension Consultant

Randall & Hurley, Inc.
(Remote / Liberty Lake WA / Helena MT)

Randall & Hurley, Inc. logo

Senior Defined Benefits Consultant

Loren D. Stark Company
(Remote)

Loren D. Stark Company logo

Retirement Plan Administrator - Senior Associate

PBMares
(Norfolk VA)

PBMares logo

Education Consultant

Pentegra
(Remote / Putnam Valley NY)

Pentegra logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

<< Previous news item   |   Next news item >>



Legality of Contributing to Cafeteria Plan Without Reasonable Expectation of Its Use
BenefitsLink Message BoardsLink to more items from this source
Aug. 11, 2021

"Can someone point me towards any applicable rules prohibiting cafeteria plan contributions without a reasonable expectation of use? I feel sure this can't be allowed, but I'm struggling to find specifics. Obviously, the goal is to increase compensation on paper to allow for a larger profit sharing distribution annually. The non-ERISA plan funds would typically all be forfeited back to the business each year. You could argue that anyone could 'acquire' a dependent any given year, but I wouldn't try to argue that's a reasonable expectation. It doesn't seem to pass the sniff test, but I can't even find what sniff tests might apply."

Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).
An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).
© 2022 BenefitsLink.com, Inc.