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We have a pre-approved plan document that requires participating employers to adopt the plan by signing a Participation Agreement, which is also signed by the signatory employer.

Participating Employer X and the signatory employer signed a Participation Agreement properly in 2012, and again to mark Participating Employer X's cessation of participation in 2015. 

During the restatement process, it has been discovered that Participating Employer X is now totally out of business. 

Participating Employers are supposed to sign a Participation Agreement for the plan right now, in order to adopt the terms of the restated, pre-approved plan. But Participating Employer X does not exist.  The pre-approved plan does not address this situation.

Do others think that it would be sufficient for the signatory employer to add a note to the restated plan indicating that the Participating Employer cannot be found, and attach the old Participation Agreement that was originally signed?

Thanks. 

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I'm not sure any additional action is required by the Participating Employer that terminated sponsorship of he plan back in 2015.  Those employees who terminated along with the cessation of the Participating Employer (back in 2015) would merely be terminated participants with balances.

Back then, there was a option of the Participating Employer to spin out of the plan, thereby creating a separate plan, and then terminating and distributing that plan.  That was merely an option.  But, ceasing to be a Co-Sponsor to the plan merely meant that their employees were no longer 'active' participants in the plan.  That doesn't require any additional action; since they're no longer associated with that plan.

Good Luck!

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You clearly say that Participating Employer X signed a document in 2015 whereby they ceased participating in the plan.

Therefore, they no longer have anything to do with the plan and the current sponsor doesn't need and shouldn't have an ex-participating employer involved in new document execution.

Larry.

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