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Bill's answer is likely correct, but i wanted to point to another issue that he did not address. What kind of business transaction was it? If it was an asset sale and all employees went to work for the buyer, then they had no service after the sale and there is likely little information after your termination date. If it's a stock sale, then employment continues after the sale, and this point is moot. In that case, it just depends on what the plan and the termination documentation say about the accrual of rights after the termination of the plan.

not really

Unfortunately not just small CB plans. Which brings whole different set of issues that plan sponsors are thinking about CB plans in terms of 401k plan, that in order to allocate something they actually need to contribute that something. Or because they already withheld something from partners, now they have to contribute exactly what they withheld, not more, not less.

I'll second what Bill said, but add that even if the amendment and/or resolution didn't address the cessation, then the plan document may include default language to the same in the event of termination. Most likely there is language in there about the creation of a short-limitation year. In any case, explain it to the sponsor and have them give you direction to only use data through 4/25; then share that direction with the auditor. The auditor has ZERO authority over the compliance testing; but some tend to think that just because they are supposed to confirm that it was done, that they are somehow supposed to confirm that it's correct.

Brie, certainly not. But leased owner did/does not require service org, just "service recipient" and 5% owner providing non-employee services to it. See Prop. Reg. 1.414(o)-1(b).

And can later be re-opened, unless the house is torn down (plan termination). Just a difference of opinion on the semantics.

Very complicated issue, big can of worms to open here.

Also, are retail stores considered service organizations?

BG5150, I take it that this is an individually designed plan? If so, insist that the firm that drafted it tell you what it means with the employer's acknowledgement. Obviously, the person who wrote it didn't realize that less than/more than leaves out the just than. I'm sure they meant 30% at 2 yrs, 60% at three, anyway. They should probably amend it to say that.

Belgarath is correct. Also, check the plan document: some of them require the insurance to be surrendered or distributed at normal retirement age.

Going from memory, no. Basis recovery for Taxable Term costs can only be used if the policy is distributed to the participant, or surrendered by the trustee. However, caveat emptor - it has been a LONG time since I had any dealings with life insurance in qualified plans. You will hopefully get a response from someone more in tune with this.

Am I only one who is confused by this question? The plan sponsor have to make the minimum required contribution, and may make more than the minimum required contribution. The plan sponsor doesn't really makes deposits on anyone's behalf.

Not exactly on point, but PLR 201241019 involved a similar situation with an ESOP participant who diversified in prior years, then took a lump sum upon termination, and the IRS treated it as a lump sum for NUA purposes.

Isn't a lump sum distribution defined as the balance of the person's account (paid in the same calendar year)? So if the entire balance is distributed in 2022, I don't see how a partial distribution in a prior year DQs it from being a lump sum.