Proposed Cafeteria Plan Regulations

On April 21, 2008, Tax Executives Institute submitted comments on the proposed cafeteria plan regulations issued under section 125 of the Internal Revenue Code. The comments were prepared under the aegis of TEI's Federal Tax Committee, whose chair is Carita Twinem of the Briggs & Stratton Corporation. Also contributing to the development of TEI's comments were Robert J. Birch of Wellmark, Inc., Chair of the Federal Tax Subcommittee on Employee Benefits and Payroll Taxes, Nancy C. Farahmand of JC Penney Company, Inc., and Michael J. Nesbitt of Paychex, Inc., and Beth P. Klimczak of Briggs & Stratton Corporation. On August 6, 2007, the U.S. Department of Treasury and the Internal Revenue Service issued proposed regulations to provide guidance under section 125 of the Internal Revenue Code relating to cafeteria plans. (1) The proposed regulations were published in the August 6, 2007, issue of the Federal Register (72 F.R. 43937) and the September 24, 2007, issue of the Internal Revenue Bulletin (2007-39 I.R.B. 681). A hearing on the proposed regulations was held on November 15, 2007.