Question

At the beginning of the year an EE elects to buy medical and dental as a part of the company's cafeteria plan. During the year the EE has the option to change benefits:

A. At any time
B. Upon a qualifying event
C. Never
D. By filling out a new W-4

Answer 1

Employees can usually change their benefit elections in a company's cafeteria plan only upon experiencing a qualifying life event, such as marriage or the birth of a child.

Step-by-step explanation:

Under a typical company's cafeteria plan, an employee (EE) has elected to buy medical and dental benefits. The question pertains to when an employee can change those benefits. The correct answer is B. Upon a qualifying event. This means that employees are usually only allowed to make changes to their elections in a cafeteria plan if they have experienced a life event such as marriage, divorce, birth of a child, or a change in employment status that affects benefits eligibility. These events are also known as qualifying life events or qualifying events under the terms of the plan.