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M&A and FSA - And COBRA and Rollover Balances

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Hi - 

Have an asset sale where the seller will terminate their FSA plan on 5/1 and open up the buyer's existing FSA plan to those seller's former employees.  They will roll the existing FSA balances of the seller's employees to the buyer.   To my understanding, any employee of the seller's who was not on their FSA plan when the deal closes does NOT have new FSA election rights under the buyer's plan (unless a QLE occurs down the road).   Can anyone confirm this is correct?   

And how does COBRA come into play here with FSA? If an employee had unused funds left over in the seller’s plan, could that employee elect COBRA for the FSA plan (to have access to their unused funds ) AND enroll into the buyer's plan as a newly eligible EE?

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