A Section 125 cafeteria plan allows employees to:

a.Choose only cash compensation
b.Choose among qualified benefits, paying for some of them with pre-tax dollars
c.Avoid all taxes on their wages
d.Purchase only employer-sponsored group life insurance, paying those premiums entirely with after-tax dollars

Giải thích

A Section 125 plan lets employees select from a menu of qualified benefits and fund chosen ones with pre-tax dollars, lowering taxable income. It is not cash-only, tax-free wages, or life-insurance-only.

Luyện miễn phí toàn bộ 716 câu hỏi — không cần đăng ký.

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Đội ngũ PrepPass · Đối chiếu với California Life & Health Insurance License Exam · Quy trình kiểm tra
Người kiểm duyệt John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — kiểm tra)
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