Simple Cafeteria Plans

Eligibility Requirements and Steps to Consider

Effective for tax years after December 31, 2010, small employers have been allowed to adopt SIMPLE Cafeteria Plans, which are deemed to meet nondiscrimination requirements as long as the plan sponsor meets certain eligibility, participation, and minimum contribution requirements. This “safe harbor” also covers the non-discrimination requirements applicable to certain benefits offered under a cafeteria plan, including group life insurance, coverage under a self-insured group health plan, and benefits under a dependent care assistance program.