gc@chimentowebb.com

I'm posting this non-securities law question here because it is the only forum that seems to address multiple employer plans. If a contributing employer ("Contributor") withdraws participation in a multiple employer 401(k) plan, because of its merger into an unrelated company ("Survivor"), can distributions be paid to employees of Contributor? Assume the employees now work for Survivor and participate in its defined contribution plan. Has there been a severance from employment due to the merger ? The ownership of Contributor has changed and Survivor is not a sponsor of the multiple employer plan. Maybe Reg. 1.401(k)-1(d)(2) applies. Or is the theory that the multiple employer plan has "terminated" with respect to Contributor, so that 401(k)(10) lump sum distributions are permissible? Or is it impossible to distribute to Contributor's employees without violating the 401(k)(2)(B) distribution restrictions ? Thanks.

Thanks, Mike I just wanted to have a sanity check on this. George

Why don't you just file an amended W-2 for the employee to reflect the intention ? It sounds to me like a ministerial mistake which you could rectify. Also, prepare an appropriate resolution showing the intent at the time to give the employee increased wages and to contribute it to the annuity per his request. Good luck.