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Section 125 Plan 2½ Month Grace Period: Participants' Bonus and Administrators' Bane
Trucker Huss, APC 
June 8, 2005
Excerpt: While falling far short of a repeal of the use it or lose it rule, the Notice does provide some welcome relief for participants. That relief, however, comes at a potentially high price for employers and third party administrators. Due to the apparent complexity of administration, and the number of unanswered questions surrounding the grace period, you should carefully consider the impact of adding a grace period to your Section 125 Plan.
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