Topic Archive: Plan Termination

How Do We Report a Plan Merger on Form 5500?

DWC | 11/7/17

Facts

Our company sponsors two separate 401(k) plans, each of which covers a different group of our employees. Due to some internal changes, we now want to merge those plans so that we only have a single plan, covering all of our employees.

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Retirement Plan Termination: Are There Special Rules for Paying Out Account Balances?

DWC | 09/26/17

Facts

The owner of our company is retiring next year, and the business will close as a result. We sponsor a 401(k) plan that we know we need to terminate, and we want to get started right away so that we have plenty of time to wrap things up before the company is dissolved next year. There are several former employees who still have balances in the plan, but most of the plan accounts are for employees who will continue working for the company right until the very end.

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403(b) Plan Termination: Fact or Fiction?

Adam C. Pozek | 02/22/11

Over the last several years, the answer has been a little of both.  Beginning with the 2009 effective date of the IRS overhaul to the 403(b) regulations, it was establised that 403(b) plans could, indeed, be terminated.  However, that legal fact has been somewhat of a practical fiction for plans funded by individual contracts.  The reason being that sponsors of such arrangements had no authority to compel distribution of those individual contracts.  Bob Toth has an excellent explanation of the conundrum here.

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