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Asset Purchase vs. practice sale


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In an asset sale, generally the seller's employees start participating in the buyer's 401(k) plan (assuming the buyer is an existing practice with a plan in place). They generally are granted service credit for vesting and eligibility as of their original date of hire with the seller so they don't start over from scratch. Generally the seller terminates the existing plan and everyone rolls over their balances. 

If the buyer doesn't have a plan, the buyer can either (1) assume the seller's 401(k) plan or (2) start a brand new one. If the buyer assumes the plan, everything stays as-is (vesting, eligibility, etc.); the plan just has a new sponsor. 

Hope this helps.

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