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The plan is not a cafeteria program simply because it doesn't supply an election concerning at the least one taxable reward and at the very least just one nontaxable qualified profit. Example four.Moreover, staff might reduced their taxes by contributing to the Cafeteria Program just before tax deduction calculations. The following Part 125 Cafeter

(B) Matching contributions on behalf of hugely compensated and important workers The necessities of subparagraph (A)(ii) shall not be dealt with as met if, beneath the approach, the speed of contributions with regard to any income reduction contribution of the really compensated or essential employee at any price of contribution is larger than that