### Question
How does the law define simple cafeteria plan?


### Answer
Under *26 U.S.C. § 125*, **simple cafeteria plan** is defined as:

> a cafeteria plan—


(A) which is established and maintained by an eligible employer, and


(B) with respect to which the contribution requirements of paragraph (3), and the eligibility and participation requirements of paragraph (4), are met

#### 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**

