terminating a plan with no plan sponsor

[eilano]

A company recently went out of business (the owners abandoned the company) and there are legal issues amongst the owners. I'm still in contact with the trustee of the plan who was a former owner of the company. He wants to terminate the plan since the company no longer exists and the participants are asking for the plan distributions. Normally, a board resolution would have to be prepared but since the company no longer exists, can the plan trustee sign a resolution and amendments to terminate the plan?

[david rigby]

I suggest trying the DOL.

[Guest Bandb]

We have a determination letter pending for a client that declared bankruptcy. The only person available to sign the GUST amendments was the bankruptcy trustee that was appointed by a court.

We have received, and responded to, follow-up questions from the IRS examiner. The signature on the amendment and resolution to terminate was not one of the questions. So, I believe that in our case it will be acceptable.

[chris]

Check your state's law as to who can act on behalf of a dissolved entity for the purposes of winding up. In North Carolina, with respect to corporations, the directors and officers have the authority to act on behalf of the corporation solely for the purposes of winding up the affairs of the corporation. We had no problems with an exam agent as to a psp maintained by a corp that dissolved 15 years prior where the plan was still around because of the bankruptcy of an institutional trustee. We had resolutions etc... executed to terminate the plan which were effective by virtue of the NC statute referred to above. Maybe GA has something similar.