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Terminating a Plan


DP

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Posted

If a practice has a Section 125 plan for health insurance only (employees pay 100% of premium), how much advance warning is required before the employer can cancel the plan?

Posted

so long as the plan document reserves the right to terminate the plan at any time, the employer should be able to terminate the plan at anytime. With that said, what is the compelling reason for waiting to terminate the plan until after year end so that employees at least have the benefit of the pre-tax contribution for the rest of the year?

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