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Cafeteria Plan
(redirected from Section 125)

    Also found in: Medical, Wikipedia 0.58 sec.
Cafeteria Plan
An employee benefit plan that allows staff to choose from a variety of benefits to formulate a plan that best suits their needs.

Also known as "cafeteria employee benefit plan" or "flexible benefit plan".

Notes:
Similar to a cafeteria where individuals select their food of choice, employees may choose benefits of their choice. Plan options include health and accident insurance, cash benefits, tax advantages and/or retirement plan contributions.



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