Which of the following is a requirement for a plan to be considered an accountable plan?

To be classified as an accountable plan, there are specific requirements that must be met, primarily focusing on the substantiation of expenses. An essential criterion is that expenses must be substantiated within a reasonable timeframe. This means that employees need to provide proof, such as receipts, invoices, or other documentation, for the expenses incurred while performing their job duties. The purpose of this requirement is to ensure that the reimbursements are legitimate and directly related to the business activities of the employer.

If employees fail to substantiate their expenses adequately and in a timely manner, the reimbursements may be considered taxable income. This highlights the critical aspect of compliance with IRS guidelines for accountable plans, which ultimately benefits both employees and employers by avoiding tax implications on reimbursements that are not properly justified.

The remaining options do not align with the criteria for accountable plans. For instance, allowing employees to retain excess reimbursements goes against the principle of substantiation, as it implies they could profit from their expense reimbursements. Similarly, if employers do not track expenses, they cannot ensure that reimbursements are appropriate and valid, which is contrary to the accountability that is required. Lastly, infrequent reimbursements do not inherently relate to the accountable plan structure; the frequency of reimbursements is not a