david rigby

The original questioner may find it useful to bookmark the DOL page that contains copies of 5500 Forms and Instructions. https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500

A should also decide who is in the plan; "keep the plan" might mean "keep it to cover subsidiary B" or it might mean something else. In addition, if the coverage is expanded, A should consider how to define eligibility service and vesting service.

Is the answer already specified in the plan document(s)?

It is my understanding that a change of plan year must be enacted on or before the date of the short plan year, and this has always been the rule/principle.

Data as of March 31, 2020 (Tuesday) First month-end after beginning of Coved-19 pandemic/isolation Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 2.73 2.73 Aa 3.35 2.82 3.09 A 3.69 3.37 3.53 Baa 4.39 4.86 4.63 Avg 3.81 3.45 3.63 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 0.34 Medium-Term (5-10 yrs) 0.53 Long-Term (10+ yrs) 1.2 Observation: (1) Comparing the Avg rates to 6 months prior, current rates are 10-40 points higher. (2) Comparing the Avg rates to 12 months prior, current rates are about 25-30 points lower.

Does a stock sale mean the plan is terminated? Is there anything in the sale agreement that requires the termination of the plan?

Implied in your question is that you have a Qualified Domestic Relations Order (QDRO). Correct? If so, has it been reviewed and accepted by the plan administrator (something in a property settlement is not sufficient)? If so, the terms of the QDRO should indicate what options (if any) you have. Assuming you refer to a defined benefit plan, some (perhaps most) such plans do not offer a lump sum option unless the value is less than a fixed amount (eg, $5,000).

https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500 Is page 6 of the Instructions a sufficient answer?

No, the second sentence states HCEs but the context implies NHCEs. I'm asking for clarity. And, I don't care about "client veracity". A statement of "opportunity to defer" is NOT the same as "negative elections".

Communication is important. One hopes that the ER has documentation of all communication to EEs. Cynchbeast, does your second sentence need to be edited?

I re-read the original post, and identified the phrase "...advise on how I should approach unwinding this ..." It appears the original poster has (or thinks he/she has) some personal responsibility for fixing the situation. Undoubtedly, the advice from Bird (get legal help) is correct, but the first step might be to identify who really does have the responsibility. BTW, several readers here will be able to refer to a qualified attorney.

Peter, would it be hasty to make any such application without accounting for any provisions in "relief" legislation and regulation?

Actuary/non-lawyer opinion: Unless there is precedent and/or legal interpretation for this, the TPA might be exceeding its authority to make such determination. But I could be wrong.

Sad.

At least he asked. Sounds like you are discussing a severance of employment. The plan defines that as a distributable event, doesn't it? I think partial termination would occur immediately, but you should check the guidance. Others probably can contribute additional concerns.

We've seen several similar questions. Apparently, it's related to Medicaid eligibility. I suggest you Search for prior Q&As, probably using the search term "Medicaid".

Your "free consultation" is the comments above. Go back and re-read the comments from Bird. Your employer/HR/payroll has no business blaming someone else.

Many more items could be affected, and it's not just the IRS: 60-day rollover requirement, ability to get a document notarized (eg, spousal consent), distribution of SPDs to new participants, distributions of SMM's, due dates for 5500's, due dates for PBGC filings/payments, Annual Funding Notice, quarterly deposit dates, benefit restriction notice (eg, DB plans that fall under IRC 436 restrictions), reporting of PBGC events, etc.

This EE might have a separation from service, or might be classified on some type of disability or LOA. Likely, such distinction could be important w/r/t to eligibility for any group term life insurance, or some other employment benefit(s). Please explore the possibility of an Early Retirement Window. It may be possible to craft the definition to fit the exact circumstances (age/service/job classification/etc.). However, note this will (probably) create a severance of employment, so any group term life insurance might be affected. Most pension actuaries and ERISA attorneys have experience that can be relevant to you.

It supposed to be written. In the plan document, that is. Amend?

Could the former owner create a new company, create a new plan, then use a direct rollover to that new plan, then have the new company purchase the old company?

Not that Larry is giving legal advice. ?

You've been given a gift: an excellent consulting opportunity. Talk to the plan sponsor, briefly outline the issue (TH tests on a separate basis are meaningless, it's important to know what's in each document) and offer to fix the problem(s). This might mean one or more plan amendments, or it might mean just reading both plans carefully and documenting what has happened/should happen. If you discover that (at any time in the past) a double TH contribution has been made, that is an opportunity for you to expand your service to this plan sponsor. If you don't want this consulting opportunity, others will be glad to do it for you. ?

If there is no award (to an Alternate Payee) of any portion of any benefit, why does anyone need/want a QDRO? Or maybe I misunderstand your situation.

Hold on here. This thread was initiated by "Coinscorner". Later, we have a post by "Qwerty". I think these are different issues, but the response above by "fmsinc" may have assumed them to be part of the same discussion. Which is it? To Qwerty: if your post is a different topic, please create a new discussion thread. If your discussion is similar to any other discussion, it's OK to reference and/or link that other discussion, but it will often be confusing to have multiple topics contained in the same thread. Thanks.