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Terminating small, ERISA 403(b)


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Company wants to establish a 401(k) as they feel it would be cheaper and offer better investments. If the plan relinquishes control over existing annuity contracts, are the account balances of the contracts as of that date, perhaps the date of resolution to terminate, used for distribution reporting on the 5500? This is a small plan where all the contracts are easily identifiable.

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So long as the insurance company has transferred the contracts to the employees, that should work. The only issue we've seen in this instance is that if the contracts were initially set up under a group contract, it may be difficult to get the insurance company to do the necessary paperwork to make them individual contracts.

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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