### Question
What is the definition of cafeteria plan?


### Answer
The definition of **cafeteria plan** is as follows in *26 U.S.C. § 125*:

> 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**

