Jump to content
Sign in to follow this  
Scuba 401

cash balance termination - client wants to restart plan

Recommended Posts

maybe strange but the client terminated his cash balance plan and paid out a few participants who also terminated employment. a couple of years later they want to revive the plan. is it possible to un-terminate and restate the plan or just restate the plan effective January 1, 2019?  trying to avoid having a totally new plan if possible. 

Share this post


Link to post
Share on other sites
30 minutes ago, Scuba 401 said:

maybe strange, but the client terminated his cash balance plan and paid out a few participants who also terminated employment.  

Does this mean that some, but not all, of the participants were paid out?

Share this post


Link to post
Share on other sites

A "couple year later"? Why weren't the paid within a year of the termiantion?

Who has been filing the 5500 each year?

Share this post


Link to post
Share on other sites
17 minutes ago, Lou S. said:

A "couple year later"? Why weren't the paid within a year of the termiantion?

Who has been filing the 5500 each year?

5500's are being filed. i believe the partners are the only ones left in the plan.  

Share this post


Link to post
Share on other sites

If "the partners" hired someone else during this "couple of years", it's possible such employee(s) should be covered by the plan.

Share this post


Link to post
Share on other sites

Did the plan really terminate or was it just frozen? It doesn't sound like a plan termination because you are ultimately required to distribute all plan assets/benefits within a reasonable time and a couple of years is not reasonable.

Share this post


Link to post
Share on other sites

Also,  were valuations and SBs done each year?   if not, there are lots of issues. 

And were benefits frozen separately from the termination action?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...