Update: Proposed cafeteria plan rules integrate old, new guidance

Recently proposed cafeteria plan regulations contain many familiar requirements, drawn from past IRS guidance and rules. But employers will find a few new twists -- some offer welcome flexibility; others raise compliance issues. This Update highlights key features of the proposed rules under section 125 of the tax code. Employers in Massachusetts, Connecticut, Rhode Island, and Missouri -- where new laws require certain employers to set up 125 plans -- may want to pay special attention to these rules. Cafeteria plan sponsors can comply now with the proposed rules or wait for final regulations.  (Update, 24 Aug 2007, 4 pages)

• Full Update (PDF)

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