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New Cycle 3 document that we use defaults to the automatic revocation of spousal designation upon divorce. There is an OPTION in the Appendix to choose not to apply this automatic revocation.

It's like the worst of each type combined.

I agree. But there would be little or no point to having a SIMPLE k vs regular k; that's why they essentially don't exist in the wild.

What about a SIMPLE 401(k) where it's still a qualified plan using the SIMPLE rules? (I'll be honest, I just double-checked on those since I never hear of anyone doing them.)

Does the plan document have any tiny print saying a divorce automatically revokes a beneficiary designation of a former spouse?

DFVC a Form 5500-SF for 2020 since it was due even though there were $0 assets. Yes they have an audit for 2021 as you have move than 120 participants on the first day of the plan year. Should be the cheapest easiest audit in history one would suppose. Why does the Plan exist? Should it be terminated? Yes it has filing requirements as long as it exists.

sorry, logo. somehow the last o got left off.

According to the February 2022 proposed rollover regulations (issued in connection with the proposed RMD regs), rollovers to qualified plans must be in capacity of employee. If a surviving spouse rolls over a distribution to a qualified plan, then that amount is treated as the spouse’s own interest under the receiving plan and not the interest of the decedent under the distributing plan. Thus, for example, in determining the required minimum distribution from the receiving plan with respect to the amount rolled over, distributions must satisfy section 401(a)(9)(A) and not section 401(a)(9)(B). (This would mean the required beginning date and uniform lifetime table factor would be determined based on the surviving spouse's age after the year of the rollover). If the participant wished to simply leave his surviving spouse beneficiary account in the plan, he could do so if the plan permits. In that case, RMDs timing would be determined based on the age/date of death of the deceased spouse. The RMD amount for the spousal beneficiary account would have to be determined using single life factors for spousal beneficiaries under the RMD rules applicable to his or her situation - death before or after required beginning date.

Ah, yes it does! Thank you so much. Should have looked there first!

I agree with Bri. I don't see any reason why the vesting granted by an -11(g) amendment would have to be equal to a percentage that would otherwise be available under the plan.

Hey now, don't make yourself a fiduciary - lay it out to the plan sponsor and let him/her pick!

Generally, was the workforce reduction the result of employer action - mass layoff, plant closure, sale of division, etc.? Usually any termination is deemed employer initiated, so employer should have clear detailed records in order to claim employee initiated voluntary terminations. If most or all of terminated participants were replaced by new employees, then maybe this is a situation of normal turnover for this employer (industry probably plays a role here as well). If similar turnover has occurred before there was plan, that is further evidence supporting position that this wasn't a partial termination. If 5500 filing shows a 20%+ reduction, employer should expect a letter of inquiry and have evidence to argue against partial termination.

Yes, but make sure your plan document allows for in-kind distributions so that nothing has to be sold to cash/re-purchased. And keep an eye out for any RMD concerns, as well!