ERISAGal Posted May 23, 2022 Report Share Posted May 23, 2022 Have a plan sponsor who is acquiring another business in an Asset Sale. The seller's 401k plan will be terminated. The Buyer's plan has been amended to allow for service with the Seller towards vesting/eligibility in the Buyer's 401k plan. The Buyer also wants to use the seller's Terminating plan participant deferral (pre-tax or roth) elections to immediately allow the seller's plan participants to defer into the Buyer's 401k plan (at least those meeting eligibility in the Buyer's plan). Is this allowable? I would think that one plan participant's deferral election cannot apply to another company's 401k, but I'm grasping.... I'm hoping there is a workaround that I'm not thinking about though or something in the regs that would allow the buyer's plan to use the seller's plan deferral elections. Would the answer change if the seller's plan was merging into the buyer's 401k? All help is greatly appreciated! Link to comment Share on other sites More sharing options...
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