smallbusinessquestion

They are slow to respond but we are 100% sure that if the plan is terminated in this manner there will be an MVA. We know to the penny what it will be, and there's no way to avoid that. Since we have already spoken to the fund about this, the fund has the right to do a lookback and charge an MVA if there are significant withdrawals from participants. We are unsure if in that situation it will effect the participants themselves or the plan directly and are awaiting a response from the recordkeeper. This is our intention, but again as in my first two comments of this thread, We can't tell if we have the option to freeze the plan in this situation, and we can't find guidance on freezing a plan for an extended time frame (who submits the 5500, for example). Perhaps a better way to phrase this thread is "how can a plan be frozen and administered for an extended timeframe after a buyout?" and the MVA is just the primary reason for doing so. thank you all for your comments and I would appreciate more if you can!

Since we have already spoken to the recordkeeper, if significant assets are transferred out of the stable value fund they will trigger the MVA. My main question is regarding date of termination. the participants themselves might be fine staying in the fund with a step-down or put option, but if the termination must occur within X months, but the Put is a longer time frame, this might not be permitted.

Hola, I am working with a small 401k that is terminating due to a buyout. The existing 401k plan has a stable value fund, which is now triggering a Market Value Adjustment. I have reached out to the fund requesting information on a put option, but since the plan is terminating, I am not sure that even if the put is allowed. Date of termination hasn't yet been established - but the assets generally must be distributed within a year of the date. I'm concerned that the put option (if available) might be more than 12 months. Any guidance would be appreciated!