Kimberly Flett
Jul 3 2002, 12:53 PM
What is the best guidance for Welfare Plans? ERISA Section 3(1)? In general, what is the major difference between a Welfare Benfit Plan and a Premium-only Cafeteria Plan? (I'm clear on the 5500 filing requirements). Is it that pre-tax withholdings on part of the employee comprise the POP funding?
papogi
Jul 3 2002, 01:00 PM
A POP is simply a basic 125 plan which allows employee contributions to qualified benefits to be handled pre-tax. It is just a funding mechanism for the underlying welfare plans.
Kimberly Flett
Jul 3 2002, 01:02 PM
thanks no wonder I was confused.
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