This is because people who have had a. stroke are patients for only a short time, first in the acute care hospital and then perhaps in a. rehabilitation program. For the rest of their lives, they are people who happen to have had a. stroke.
DEFINITION of 'Cafeteria Plan'. An employee benefit plan that allows staff to choose from a variety of benefits to formulate a plan that best suits their needs. Cafeteria plan options may include health and accident insurance, cash benefits, tax advantages and/or retirement plan contributions.
To qualify, a cafeteria plan must allow employees to choose from two or more benefits consisting of cash or qualified benefit plans. The Internal Revenue Code explicitly excludes deferred compensation plans from qualifying as a cafeteria plan subject to a gross income exemption.Section 125 also provides two exceptions.he second exception is that if the statutory nontaxable benefits provided to key employees exceed 25 percent of the aggregate of such benefits provided for all employees under the plan, then the key employees must report their cafeteria plan benefits as income.