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IRS Says Healthcare Account Elections for Cafeteria Plan Participants May Continue After Employer's Sale
Internal Revenue Service [IRS]Link to more items from this source
[Official Guidance]
June 10, 2002
Revenue Ruling 2002-32. Excerpt: In an asset sale, may transferred employees who have elected to participate in health flexible spending arrangements (FSAs) under seller's I.R.C. § 125 cafeteria plan continue that benefit without interruption at the same level of coverage after becoming employees of buyer?

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