Common use of Flexible Spending Account and Cafeteria Plan Clause in Contracts

Flexible Spending Account and Cafeteria Plan. 1. The District participates in Section 123 of the IRS Code by offering employees the Cafeteria Plan. The employee may select certain qualified benefits and reduce his/her taxable wages by the cost of these benefits, resulting in substantial tax savings. This tax savings can be in take-home pay or be used to purchase additional benefits.