PS

Thank you. Yes, its a stock acquisition and the Plan terminated prior to the sale date. As per the plan sponsor and their advisor these participants have not met the Required Beginning Date because they have not had a termination of employment from the terminated plan and they have simply changed employers because of the acquisition hence RMD will not be required. Thoughts?

I have a very unique plan situation, one the plan that is terminating due to acquisition some of the participants are 72 1/2 and are eligible for RMD now they Advisor has stated since the participants are not terminated from their employment in terminating plan and are just acquired by the acquiring company these participants will not be subjected to RMD since they are not terminated employees is that true? Does Employment status play a key role in RMD? I thought once the participants attain 72 1/2 they are required to take the RMD also since the plan has terminated and they will be a distribution event so the participants will require to take the RMD correct?

One of the 401 (a) is terminating and its have a MPPP through the plan sponsor had opted for annuity they never purchased an annuity and now the plan is terminating. I believe the plan sponsor needs to provide annuity only for those who elect however since this plan sponsor has opted for Annuity and has not purchased an Annuity, will the client need to first purchase annuity for everyone who will elect for annuity and then proceed with the Plan termination? Also In case of the Non-responsive participants can the plan sponsor do a force out without purchasing an Annuity?

Thank you

One of the participant rolled the funds to an IRA ( since the plan terminated) the rollover occurred in Feb 2021, now since the acquiring company will be setting up a 401K plan the participant wants to rollover the funds from IRA to the new 401K that will be set up in April, I believe the participant can rollover to the 401K plan however I believe the tax record may needs to be corrected - Correct?

Thank you! I just have one last question should these asset movement be handled as a transfer or rollover to the qualified DC plan?

Any legal consequences if they rollover the unresponsive participants funds to the CORE plan only for the ones with good address?

That's what I thought, any legal consequences if they rollover to CORE plan only the ones with good address? I believe it would be unfair to rollover only the ones with good address to the CORE plan

When a 401K plan terminates participants are generally provided 30- 60 days to request for their distribution and if they fail to respond plan sponsor can direct to process force out distribution, for an ESOP plan upon client direction can we rollover the unresponsive participants funds to another 401K plan (they have a Core plan) . Any one with good address to be rolled over to 401k plan (CORE plan) and any one with bad address to be rolled over to an IRA is this permissible?

Thank you! One of the terminating plan that I'm assisting one participants has a balance of $400,100.00 and an outstanding loan of $39,000 all participants are expected to move they funds out by April. The participant likes to offset this loan amount, and roll it into an IRA. Will I be right in saying the actual rollover amount will be $400,100.00 however the total distribution shown will be $439100 including the loan offset amount and the participant has time until 60 days from the date of distribution to rollover the $39000 loan off set amount from his pocket? I believe the participant will be receiving two 1099-R one for the distribution "G" and one for the loan off set amount "M" or "M7" depending on the age. Correct?

Hi, I believe participants with outstanding loan can rollover their loans to an IRA account, can anyone provide more detail on this?

I'm assisting with the 403 B plan termination for the first time, this has a GCA ( Group Custodial Agreement) how different is the termination process? What are the keys factors that I will need to look into it. There are participants who have outstanding loans, when a 401K plan terminated the participants will be allowed to roll over the loans into the acquiring company plan how does it work with 403 B GCA( Group Custodial Agreement)? Can funds be liquidated and cashed out? Can the funds be rolled over only to a retirement plan or can it be rolled over to an IRA? For non-responsive participants - Generally when a 401k plan terminates participants are given at least 30 days to make/take distribution of their choice, what is the time period provided for participants with 403 B? can the funds be rolled over to an IRA if they don't respond? Any material that I can refer?

Thank you all 🙂

Thank you!

Hi, Is SAR sent to anyone who had balance in the plan that fiscal year or to everyone in the plan, however do we determine who should be receiving the SAR.

There is no company stock, The deal settled in cash per share, the stock proceeds funds was established and holds cash.

There is no Loan, I don't believe there is escrow but I will double check. Since the stock proceeds funds are traded on a monthly bases will that delay, should this be put into money market? Thank you...

The deal settled in cash per share, the stock proceeds funds was established and holds cash, the cash is held by the stock trustee and the stock proceeds funds trades monthly for exchange out and sales of the stock proceeds.

Hi, One of my client is terminating the ESOP plan, this is the first time I'm assisting a ESOP plan termination. Could you help me understand how different is a ESOP Plan termination from a 401(k) Plan Termination. Terminating due to acquisition Part will be moving to the acquiring company plan - Can participants move the funds in- kind to the acquiring company 401(K) ? The plan does not have any Stock assets - Does the sponsor have 6months to distribute assets or is there a 6month rule ? If the participants do not take action can these be liquidated and rolled over to an IRA like we would normally do in a 401(k) plan. ?

For Terminating plans I believe we can turn off the revenue credit getting posted into the plan, however will this require any plan amendment?

Thank you all, I'm trying to get more information from my client.

This is related to QDRO- I need to know understand what the “date of valuation for distribution to the Alternate Payee” means. Is it the date funds are deposited to the Alternate Payee account? Also, I would like to know what would be the time frame between the date of segregation and the date of valuation for distribution to the Alternate Payee.

Thank you Larry. Though the plan Terminated on 03/31/2020, the liquidation of assets is not done since they are waiting for their Fav letter and then allow distribution, so what I understand amendment will not be required. Thanks

Thanks you. Another client is Terminating the plan and are filing for 5310, they want to opt-in to the CARES Distribution option for their plan. However, they are concerned about the timing of the amendments. Because the CARES Act Amendment won’t be available until next year 2021, how should they address that amendment prior to their plan termination date which is Term date 03/31/2020. Should the amendment be done first or is it fine proceed with a termination.

The original plan(is the same Terminating plan) does accept rollover, so I believe this can be put back as a rollover however how will the taxes be handled since the taxes were deducted for the MRD check that was issued should the tax be corrected or the participant will have three years time to repay the taxes? Also when you say any distribution made in 2020 is a CRD to a qualified individual, I suppose it is any eligible individuals as per the plan for example a Terminated participants, retire, beneficiary etc and these individuals needs not be particularly affected by the virus. Hope I've got it right... Thanks You..