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Under 1.401(k)-1(d)(4)(i), you can not make distributions from a 401(k) plan upon plan termination if the employer sponsors another defined contribution plan at any time within the 12 months after the distributions from the plan are complete. This is sometimes known as the successor plan rule. Because this was a stock purchase, the purchaser is now the sponsor of both plans, so they could not terminate one while continuing to maintain the other. They either have to maintain both indefinitely, or merge one into the other.

Yeah, this has never been a big deal, just change the sponsor, show it on the 5500 and done. In fact I was speaking to a client about this yesterday as he will need to do so. I told him this is one of the few things in this business that is still relatively straightforward, the IRS hasn't mucked it up yet. I guess they realized their oversight and are now working to complexify something that has never previously been a problem.

Towanda, now that C.B. Zeller has filled in that piece for you, I just want to add that I think what you have outlined in your post is a pretty good rundown of the issues and possibilities.

Got a new plan to us. The plan document is written with 0% integration level on a 2 tier non-elective. Why would some do this? What is the logic? I don't get it.

rocknrolls2, I agree with Appleby. I think you have to distinguish between what has to be paid and when (RMD in year of death), and to whom it belongs. If the check had been cut right before the individual died, it would go into the estate. But once the participant dies, the account belongs to the beneficiary.

There is never really a good time for their site to go down, but they have to do maintenance sometimes. That said, I don't remember seeing anything announcing this ahead of time. It is possible this was unplanned? Maybe related to the recent AWS outages? Assuming it does come back up on 12/22 as scheduled, that still leaves you a full week (even accounting for holidays) to get your filings submitted. If this downtime really does prevent you from filing on time, you could try asking them for an extension, or at least a waiver of any penalties. They are usually pretty reasonable.

From the instructions to 1099-R: No withholding on direct rollovers.

https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(a)(9)-9

that At least that's what I remember from half-listening to Derrin's recent webinar.