Who qualifies as participants in a Cafeteria plan?

Participants in a Cafeteria plan typically include both current and former employees. Cafeteria plans offer a flexible benefits package that allows employees to choose from a variety of pre-tax benefits, such as health insurance, retirement contributions, and other perks. It's essential to understand that these plans are designed to provide benefits that can also extend to eligible former employees, allowing them some continued access to the benefits offered.

However, spouses and dependents of the employees do not qualify as direct participants in the Cafeteria plan. While they may be beneficiaries of certain benefits selected by the employees (such as health insurance), they do not have the option to select their benefits within the Cafeteria plan itself. Thus, the inclusion of only current employees in option A would not fully encompass the eligibility of former employees, and limiting participation to just full-time employees in option C excludes part-time employees who may qualify. Therefore, the accurate choice reflects a broader view that current and former employees can participate, while excluding dependents and spouses from direct participation.