What provision must a qualified Cafe Plan include regarding benefits?

A qualified Cafeteria Plan must include clear eligibility rules and participation procedures to ensure that employees understand their options and the criteria for choosing among various benefits offered under the plan. This clarity helps in promoting informed decision-making, allowing employees to select benefits that best meet their individual needs.

By establishing well-defined eligibility rules, employers can outline who qualifies for the plan and any criteria that must be met for participation, fostering transparency and compliance with regulatory requirements. Proper documentation and communication of these rules are essential to avoid misunderstandings and ensure that employees can effectively utilize the benefits available to them.

While the other options may hint at aspects of benefit descriptions or agreements, they lack the necessity for clarity and structure that is crucial for eligibility and participation in a qualified Cafeteria Plan.