Slem Posted June 25, 2021 Report Share Posted June 25, 2021 Company A is acquiring Company B via stock acquisition. Both companies currently sponsor retirement plans. Company A has a stand alone plan and Company B is part of a PEO. Once the acquisition happens Company B will retain their own EIN and act as a subsidiary of Company A. The intent is for Company B to terminate participation in the PEO plan prior to acquisition. Post acquisition Company B will become a participating employer on the Company A plan. The question is does Company B employees have a distributable event or would participation in Company A plan be viewed as a successor plan? Link to comment Share on other sites More sharing options...
QP_Guy Posted June 25, 2021 Report Share Posted June 25, 2021 No, i don't think it would be a successor plan: I think that the reason why it's suggested to terminate a plan prior to stock sale is to eliminate the successor plan issue Link to comment Share on other sites More sharing options...
Cardscrazy Posted June 25, 2021 Report Share Posted June 25, 2021 The employees of the PEO are terminating employment there and are experiencing a distributable event as a result. Ask employees of Company B to rollover into Company A's plan. Link to comment Share on other sites More sharing options...
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