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When a company sells assets and transfers employees to the buyer, an issue arises as to whether the employees are entitled to a distribution under the seller's 401(k) plan. A recent IRS ruling permits distribution, even where the employee continues in the same position. Although the ruling relaxes the "same desk" rule, an employer should nevertheless be mindful of certain issues when applying this new rule.
March 08, 2001 at 12:00 AM
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The original version of this story was published on Law.Com
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