What types of benefits cannot be offered under a cafeteria plan?

Some types of benefits are off-limits and cannot be offered as part of a cafeteria plan. These include the following:

• scholarships and fellowships grants;

• employer-provided meals and lodging;

• rides in employer commuter vans;

• educational assistance programs;

• tax-exempt fringe benefits (sometimes called Code Sec. 132 benefits) such as de minimis fringe benefits, no-additional-cost services, employee discounts; and working condition fringe benefits;

• long-term care insurance, or any product that is advertised, marketed or offered as long-term care insurance;

• long-term care services (except that funds from an HSA offered through a cafeteria plan may be used to pay eligible long-term care premiums or for qualified long-term care services);

• group-term life insurance on the life of any individual other than an employee (whether includible or excludible from the employee's gross income);

• health reimbursement arrangements (HRAs) with a carry-forward feature;

• contributions to Archer MSAs; and

• elective deferrals to Code Sec. 403(b) plans.