david rigby

In addition, your legal counsel will help determine whether there might be a potential 415 violation.

You've come to the right place. At the link above, you can filter on various characteristics: plan type, size, etc. After such filtering, you will need to do some reading. In addition, you've also got the right actuarial consultant: I recommend you engage Effen for your study.

Does the plan include any reference to disability? For example, might it impute hours while disabled?

It? Are you saying the sole proprietor became a corporation? Perhaps the sole proprietor created a new corporation?

Identify the correct beneficiaries.

Maybe it's just me, but I think something else is going on. As is often the case, you may need consulting advice, more than the facts presented here. You are urged to contact the plan actuary, who will ask deeper questions. For example, the most important questions will be, "What are you trying to accomplish? And why?"

Maybe it's just me, but it seems the question in the first sentence of the original post is answered by the remainder of the original post. Perhaps, is there some unstated other question?

This is the correct question. So far, unanswered.

DRO directs payment to Participant? Not to AP?

Re-reading the original post, I ask caution with terms such as "deaths" and "death claims". They are not interchangeable.

Check with your attorney also.

A few years ago, I was aware of a non-profit hospital purchased by a county-run hospital authority, so that the plan immediately became a governmental plan. The date of acquisition was the end of a short-plan year on the 5500. However, the plan was not terminated, and the "final filing" check-box was not checked. There were no subsequent 5500 filings, so a "final filing" never occurred (i.e., because federal agency "oversight" had expired). The facts presented in the original post above seem to be inconsistent, using "freeze" as if equivalent to a plan termination. Check the plan document for the conditions related to an "in-service distribution". This plan sponsor needs to consult an ERISA attorney, now.

Call me a cynic, but this might be the most important issue.

https://benefitsattorney.com/

Is the "remainder" less than $5K? Some plans include a provision that automatically distributes a balance below that threshold.

You may have made a bad deal. Why only 40%? Why give up home and equity? (that is, maybe you should have a share of each.) Maybe poor performance by your attorney. Maybe your ex-husband hid information? You probably need legal advice; perhaps a different attorney.

How much would it cost to give 100% vesting? Usually, not much. Take the high road, please.

In addition, search "sham termination" on these Message Boards.

Is there a question?

FWIW, in 4 decades, I have never seen the word "wearaway" used in a plan document or amendment. That's not to say such use is incorrect, just surprising to me.

https://www.irs.gov/pub/irs-tege/cola_table.pdf

Read this one: Old Beneficiary Designation Effective? - Distributions and Loans, Other than QDROs - BenefitsLink Message Boards

Today is the first day of the rest of your life. It's also the first day after my retirement. After 43 years of being an actuary, I'm moving on to other things. It has been a wonderful profession. Thanks to Dave Baker and BenefitsLink, and all the contributors here, for helping. My brain will not atrophy, at least not immediately; I'll be glad to help anyone who needs anything. A brief reflection on the most important rules of consulting: 1. Never lie to your clients, or your colleagues. 2. Never be late for a meeting. 3. Date everything, and never back-date anything. 3a. Date and initial all worksheets, drafts, etc. Don't toss any of them until you have completed the final version. 4. Remember that you are selling expertise and creative thinking, not trying to fit your client into a pre-determined solution. 5. Professionalism and integrity matter. Good luck. Rigby out.

Good documentation is never bad reasoning.

It is hasty to insist the word "transfer" is accurate. For example, Employee terminates employment with Chevrolet, moves to another state, one month later gets a job with Buick; using General Motors (not dealerships) and assumes (only for this example) that each GM subsidiary has its own plan. That is a real separation of employment, not a transfer. Such event might trigger a distributable event, but the new hire might change that status. The important characteristic is to count CG hours of service for purposes of vesting in both plans. Often, the challenge is to identify such employees/hours, but that's what vesting service requires. Note that this might affect more than just vested percent. Suppose eligibility for Early Retirement (or something else) is based on a minimum years of vesting service, just another reason to identify the CG hours.