What is the primary feature of a cafeteria plan?

The primary feature of a cafeteria plan is that it allows employees the flexibility to choose from a variety of benefits that best suit their individual needs and preferences. This customization enables employees to select benefits such as health insurance, retirement savings options, and other perks according to what is most relevant to their personal circumstances, family situation, and life stage.

Cafeteria plans are designed to meet diverse employee needs, thus enhancing employee satisfaction and engagement. By creating a menu of options, employees can effectively tailor their compensation packages, which can lead to improved retention and attraction of talent within the organization.

This flexibility distinguishes cafeteria plans from more traditional benefit programs, which often provide a standardized set of benefits without regard for individual employee preferences. The ability for employees to select benefits that align with their requirements is a fundamental characteristic of cafeteria plans, making option B the correct choice.