What is the benefit of a cafeteria plan? Is there something special I should do when filing taxes to gain the benefit from these types of pretax health plan contributions? Should I ever not choose the pretax option? I have had these health plans at jobs before and don't really understand if they help my tax situation or not.
Is this an automatic savings or something I need to claim on taxes? When I first had one of these plans I didn't see much difference and started owing a good amount end of year. Since I have a tipped income that changes it may have also been due to fluctuating income just trying to better understand how these plans are beneficial. By saving me money short term do I owe more end of year?