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APA CPP-Remote Exam - Topic 4 Question 89 Discussion

Which of the following plans describes a cafeteria plan under Section 125 of the Internal Revenue Code?
C) a plan which permits EEs to select from two or more qualified taxable and nontaxable benefits
A) a quantified and accountable expense reimbursement plan
B) a tax-qualified retirement plan for public educational institutions
D) a plan whereby state gov't EEs may request that pretax dollars be set aside in a retirement account until age 59

APA CPP-Remote Exam - Topic 4 Question 89 Discussion

Actual exam question for APA's CPP-Remote exam
Question #: 89
Topic #: 4
[All CPP-Remote Questions]

Which of the following plans describes a cafeteria plan under Section 125 of the Internal Revenue Code?

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Suggested Answer: C

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Bobbye
4 days ago
This question seems similar to one we practiced where we had to identify different types of employee benefit plans. I think C fits best.
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Larue
9 days ago
I remember studying about Section 125, but I’m not entirely sure if it’s specifically about taxable and nontaxable benefits.
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Isabella
14 days ago
I think a cafeteria plan lets employees choose from different benefits, so I’m leaning towards option C.
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