Buy Now

Physician Contract Glossary · Benefits & Leave

Cafeteria Plan

A cafeteria plan lets you choose among pre-tax benefit options, such as health premiums and flexible spending accounts.

A cafeteria plan, named under Section 125 of the tax code, lets you pay for certain benefits with pre-tax dollars and choose among options like health premiums, flexible spending accounts, and dependent care. It lowers your taxable income on benefits you would buy anyway. The details, which options are offered and the contribution limits, are set by the plan documents.

WHAT TO WATCH FOR

Review which pre-tax options the plan offers and the annual limits, then use them, because pre-tax benefit dollars are a quiet raise. Read the plan document rather than relying on a one-line summary.

Related terms

Stop being recruited. Start choosing.

You are about to sign something the senior people in your program signed without reading.

They had no guide either. You do. Start with the option that costs you nothing: see every practice that is actually out there before anyone hands you a contract.

Browse the Practice Directory    Subscribe to the Newsletter