### Question
How is the "cafeteria plan" defined?


### Answer
The term **cafeteria plan** is defined in *26 U.S.C. § 125* as follows -

> a written plan under which—


(A) all participants are employees, and


(B) the participants may choose among 2 or more benefits consisting of cash and qualified benefits

#### Citation:
  - *26 U.S.C. § 125*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

