Guest kco7 Posted August 31, 2012 Report Share Posted August 31, 2012 I've run into several confusing issues regarding termination and distributions. Back in January, Firm 1 sold out to Firm 2. Now, we are working on preparing the 5310 for Firm 1's 401(k) and Profit Sharing Plan ("Plan"). The Plan retains the old same-desk rule, as well as the language regarding the sale of substantially all assets from the pre-EGTRRA language in 410(k)(10). Many current participants of the Plan are requesting distributions. We would like to hold the money until we receive a determination letter from the IRS. Can we do this? From what I can tell, Rev. Rul. 2000-27 softened the same-desk rule prior to EGTRRA and/or in anticipation of EGTRRA. So, even if the Plan retains the old same-desk rule, the same-desk rule as applied will be the same-desk rule as modified by Rev. Rul. 2000-27. Under that Rev. Rul., I believe that the Plan participants have experienced a separation from service. I also think that we may have satisfied the Plan language regarding the sale of substantially all assets. In short, if we have satisfied two distribution events in the Plan, or the same-desk rule/separation from service AND the sale of substantially all assets, may the Plan Sponsor postpone requested distributions until we file the 5310 and receive a determination letter from the IRS? Link to comment Share on other sites More sharing options...
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