# Cafeteria plan

> Cafeteria plan — A written plan that lets employees choose between cash and qualified benefits — health premiums, a health FSA, dependent care — so that what they choose is paid pre-tax: out of income-tax wages and out of FICA wages.

Source: https://lopifi.com/glossary/cafeteria-plan
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is cafeteria plan?** In accounting, cafeteria plan means a written plan that lets employees choose between cash and qualified benefits — health premiums, a health FSA, dependent care — so that what they choose is paid pre-tax: out of income-tax wages and out of FICA wages.

## Also known as

- Section 125 plan

## Words this system refuses for it

- flexible benefits unqualified
- a 401(k) (deferred compensation is excluded)

- **Category:** Benefits
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** health-flexible-spending-arrangement, fica