Flexible-Benefits Plan

​What is a flexible-benefits plan?

A flexible- benefits plan, also called a full-flex plan, is a type of cafeteria plan benefit under Section 125 of the Internal Revenue Code that offers employees a choice between receiving their compensation as cash or as nontaxable benefits such as life and health insurance, retirement plans and child care. Employers generally make contributions for all plan-eligible employees, and employees use those contributions to buy various benefits. Employees can also make pre-tax contributions toward any benefit that the employer contributions do not fully cover.