Q.- Is there a difference between a cafeteria plan and an FSA plan?
A.- A cafeteria plan, also known as a Code section 125 plan, describes the ability of employees to pay for benefits on a pre-tax basis.
A flexible spending account (FSA) is a type of cafeteria plan benefit, funded by salary reduction, that reimburses employees for expenses incurred for certain qualified benefits (health and dependent day care).
