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Implication of New Definition of Dependent for Employer-Sponsored Plans
McDermott Will & Emery Link to more items from this source
Dec. 3, 2004
Excerpt: In the absence of any further guidance ..., it may be prudent to communicate the new definition of dependent to participants in dependent care spending account plans and permit those employees who planned to submit expenses for non-qualifying individuals to revoke and/or revise their elections so as to avoid any forfeitures. In addition, employers should review their hardship withdrawal procedures under 401(k) and 457 plans to determine whether any changes are required.

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