52626 Posted February 26, 2016 Report Share Posted February 26, 2016 Plan is terminating effective 2/29/2016. The Plan offered a GIC investment. As a result of the termination, participants invested in the GIC will be charged and early withdrawal charge. Can the Employer pay this fee? There are only 8 out of 45 participants in the GIC that will be subject to the Surrender Charge. If the Employer pays the cost, and the fee is treated as a contribution, to these 8 participants, does the plan need to pass 410(b) as it relates to this contribution. If so, it will no pass coverage. Link to comment Share on other sites More sharing options...
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