cpc0506 Posted May 19, 2014 Share Posted May 19, 2014 Hello. I need some help here. Employer A had a 401(k) Plan (Plan A). A control group existed between Employer A and Employer B. Employer B completes a participating employer agreement to parcipate in Employer A's plan. Employer A ceases to exist and terminates the Employer A 401(k) plan as of 12/31/13. Plan A distributed the funds to all employees of both employers. Employer B establishes a new plan (Plan B) as of 1/1/14. Does this constitute a successor plan? Also, some of employees of Employer B have rolled their distributions from Plan A to Plan B. Is the rollover money considered a related rollover or not? Link to comment Share on other sites More sharing options...
Lou S. Posted May 19, 2014 Share Posted May 19, 2014 If employer B had a participating agreement why didn't they just take over sponsorship of the pkan on 1/1/14 instead of terminating the plan? Since they are a controlled group they are considered 1 employer for pension plan purposes and yes I think you have some sucessor plan issues and improper distribution issues. Link to comment Share on other sites More sharing options...
cpc0506 Posted May 19, 2014 Author Share Posted May 19, 2014 I have learned that all the funds of Employer B that were in Plan A have been rolled to Plan B. At least there have been no distributions per say. I am not sure why Plan A was not taken over by Employer B and just renamed. Many questions, no answers.... Link to comment Share on other sites More sharing options...
david rigby Posted May 19, 2014 Share Posted May 19, 2014 I have learned that all the funds of Employer B that were in Plan A have been rolled to Plan B. At least there have been no distributions per say. "rolled" might be different from "transferred". the former implies a distribution. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
cpc0506 Posted May 19, 2014 Author Share Posted May 19, 2014 I agree that they should have been transferred to the plan..... if the plan was even allowed to be established. I am not sure if that is even the case. Link to comment Share on other sites More sharing options...
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