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My employer maintains that he provides a "cafeteria plan" which reduces my income by the amount of my medical insurance premiums for tax savings. I checked the IRS definition under Section 125 which says the employee must be able to "choose between cash and certain qualified benefits". I have had this with other employers. Essentially, if you didn't want any benefits (i.e. already covered on spouse's plan) you could receive cash instead. My current employer says I'm wrong, he does not have to offer that. Any comments appreciated.
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