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Cafeteria Health Care Spending- Controlled Grps

Guest kp

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Two C Corps (A&B) are in the same controlled group under 414. Each maintains a separate health care spending account with different maximum contribution elections defined by the respective plan terms. Per 125(g)(4) ees of A and B are treated as under a single employer. What happens if an ee in B elects $2000 contributions to health care, and then moves to A which only has a maximum $1500 election? EE can still seek reimbursement for expenses incurred while at B, but what if ee wants to continue to use the $2000 maximum from previous employment? Any other issues or problems?

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