Dissolution of a company and merging operations with another

[bcspace]

What happens to a Cafeteria Plan if a company dissolves mid year? What if the company merges operations with another company? Where can I find some rules and regs on this sort of occurance?

Thanks

[J Simmons]

I would begin researching with Rev Rul 2002-32, 2002-1 CB 1069 (June 6, 2002)

[bcspace]

Thanks. Do you have a link? I don't seem to be able to find those or at least what I find doesn't seem to address the issue.

I can get it down to a more specific question on this. The proper term in this case is "dissolution". The company is being dissolved. Their plan and employees are being terminated and the employees are being rehired. The goal is to have it happen in July. So, the question is, is there any way or anything that implies the company could amend their plan to include the ability to accept claims for the old plan after the plan is terminated?

The rules (from the EBIA manual section 36 D) seem very broad and unspecific on this and I know, for example, they could accept claims for a period after plan termination that exceeds the normal claims grace period. But specifically, the employer wants to know if claims could be incurred somehow after the plan termination date. There are apparently a lot of employees who have accumulated a lot of funds but had no plans to spend them in the near future and they may not be able to spend down in so short a time. Is there relief for them in this case?