A cafeteria plan can provide a wide variety of benefits to an employee. These plans are desirable to both the employer and the employee, as both parties can reduce their tax burden by participating. For this reason, these plans are relatively common. For an employee to derive maximum benefit from a cafeteria plan, that employee must understand the different benefits provided. In this exercise, you will use the Internet to research the most common cafeteria plan features, and then you will describe a number of them.

Begin by researching the possible elements of a cafeteria plan. Identify three components that you believe would be most beneficial for you, either now or in the future. Write a paragraph of at least six sentences in which you discuss your three selected elements. Ensure that you both define the benefit and discuss why you believe it would be helpful to you.