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The IRS buys into the idea that the termination of the A plan occurred under Employer A. When corporation A stock was acquired by Corporation B, A became a member of the Employer AB controlled group. The B plan of Employer B and Employer AB is not a successor plan to the A plan because the A plan was never maintained by Employer AB. The A plan was terminated before Corporation A became a member of Employer AB. Never mind that the wind up and liquidation of the A plan is managed by personnel of Employer B. Never mind that a plan is not terminated for tax purposes until all of its assets have been distributed.

Sorry, but I must have misread your first question. I thought you asked if you could have a seperate waiting period for a particular expense that is covered under the health plan. You can have a waiting period up to 90 days, and actually there can be some slightly more due to issues such as obtaining a certification/license for work. You can also have different waiting periods. I don't understand the last part "Also, is a period tied to "particpation" in the plan as opposed to service itself really a waiting period? It is not based "solely" on the passage of time"

Agree with QDROphile. We've had this happen several times over the years with our own company as we've merged with other accounting firms.