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Not applicable
posted Apr 5, 2020 2:35:54 PM

What is the" Less Other Cafe 125" line item under my 401k amount on my W2. Is it deductible?

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2 Replies
Expert Alumni
Apr 5, 2020 2:54:01 PM

 "Cafe 125" stands for IRS regulation code section 125 regarding tax-free cafeteria plans.

 

These cafeteria plans allow employees to set aside pre-tax income for certain employer-offered benefits. Benefits provided by plans covered under section 125 include adoption and dependent care assistance, health insurance, 401k and group term life insurance policies. They are called cafeteria plans because employees are given a list of benefits to choose from, similar to a cafeteria-style menu.

 

Some benefits not covered by section 125 include: education assistance, Archer Medical Savings Accounts, meals and transportation benefits.

 

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Level 15
Apr 5, 2020 2:57:53 PM

And no it is not deductible.  It already came out of your checks pretax meaning it wasn't included in your income so you can't deduct it again.