The U.S. Chamber of Commerce issued a statement on March 16, 2017 supporting the use of cafeteria plans and requesting that the use of cafeteria plans be opened up for self-employed individuals in an effort to promote cafeteria plan use among small businesses.
In its statement, the Chamber expressed its view of the existing rule that prevents owners of certain types of businesses from participating in cafeteria plans as follows:
“This rule clearly discriminates against business owners/employees based solely upon the type of entity in which they are operating their business.
Since they are not able to participate, owners are discouraged from implementing cafeteria plans.”
The statement also included a request that long-term care insurance and longevity insurance premiums be added to the list of allowable cafeteria plan benefits due to their increased use and overall importance.
The statement emphasizes that longer life expectancy increases the possibility of outspending retirement savings and requiring some form of long-term care.
Amendments to both the tax code and the cafeteria plan regulations would be required in order for these changes to be implemented.
Click here to read the statement in its entirety.