Pinefresh

I've got a participant who died at age 69 and one month back in December 2016. Her beneficiary designation form says to pay her account balance to some charitable NFP (she was not married at time of death). Is there any withholding taken from the payment? Thanks.

One person plans (in this case, for a S-corp) are not subject to parts of ERISA. Are they covered by the seven business day safe harbor for depositing 401(k) deferrals? Thx!

But I thought that was the problem with these direct-to-participant 403(b) plans - they can't be terminated without employee consent. Or am I mixing that up? I've since learned that the participant count has reached audit level, so two plans would mean two audits: one for the old accounts (even though no new money would be going in), and one for the new accounts (where are the new money is going). But one plan seems like it would be easier. What are the "right conditions" to transfer?

A non-profit we work with has a 403(b) plan - all the participants have the individual accounts where the contracts are between them and the product directly. Now the plan sponsor wants to leave that product, but they can't unless each individual participant agrees to it - there are dozens, so I'm sure we won't get them all. They suggested freezing Original Plan and starting a new 403(b) plan (where the employer controls the accounts, thankfully), and then the participants can transfer from Original Plan to New Plan at their leisure. But I don't think that works because the active participants have no distributable event from the Original Plan, so therefore there is no legal basis to move the money from Original Plan to New Plan. Am I making a mountain out of a molehill? I thought we could have the plan sponsor terminate the Original Plan - that would give the participants a distributable event to move to New Plan. Twelve months later, there will still be some terminated participants who haven't moved... so the plan termination fails and Original Plan still has to continue to exist as an active plan. But the accounts that got rolled over to New Plan don't have to go back, so we basically just created a 12-month window to make these transfers. Is that OK?