PS

Hi, One of the participant is trying to rollover his 401k Plan into his SIMPLE however there was no funding for 2 years (into his SIMPLE). if the there was no funding for 2 years is it true the part will not be able to rollover the funds to his SIMPLE? Thanks

Thank you! The plan sponsor would like to convert the 401k plan to a SIMPLE IRA is it possible?

Hi, Participants from a Terminating 401k plan can transfer the funds to a SIMPLE account? Thanks

Just pointing to my original question will a Mid-year notification be required and if an amendment be required?

Its a safe harbor plan.

Hi, Plan is terminating due to asset sale and the term date is 07/08/2022, since the plan is terminating Mid-year should a safe harbor notice be sent and will an amendment be required? Thanks

It's a PIMCO stable value fund and its a plan termination and the client has already informed them about the plan termination and there is a 12 months PUT. since we are dealing with unresponsive participants the fund swill be liquidated and rolled over to an IRA account.

Ok, here the plan sponsor does not want to wait for the 12 months PUT and just want to force out the unresponsive participants funds to an IRA provider. Hence the stable value provider state they will pay/make the adjustment once its rolled over to the IRA provider is this something doable? I've never seen this happen.

Hi, I've encountered a very unique situation. One of the terminating plan has a stable value fund and the client does not want to wait for the 12 months PUT period they want the MVA adjustment done and also they would pay the market value directly to the IRA provider where the participants will rollover. I've never come across something like this, how can the participants can get paid or what would be a better approach?

We haven't received who will be signing, but I will check on this. Thank you.

Yes, is an amendment required if so, what amendment will be required.

Hi, Plan was terminated by Sponsor on 12/28/2021. Plan was terminated by plan counsel advice. As a corporate action/ acquisition plan is starting a new plan. Plan counsel is advising that the terminated plan needs to be amended. Do the terminated plan needs to be amended? When a plan terminates we don't ask for an amendment since the letter of Direction Document and the Board of directors resolution captures the requirement of the plan sponsor's intent to terminate the Plan and this ideally suffices the requirement to terminate the plan. However since here the counsel has the plan sponsor to do an amendment what kind of amendment will be required? Thanks

its a DC 401k plan and looks like the pervious RK did not provide the part indicative. I can check with the Plan sponsor on the W-2 reports.

Any thoughts?

Hi, I've encountered a very strange situation, one of the terminating we have a participant with a bad ssn and also the account was set up without a name I'm not really sure how this could have happened. Since the ssn is incorrect and we don't have a name how can these account be handled does IRS provide any guidance on bad ssn and unknown name.

Hi Good Morning, A terminated plan needs to be re-opened because the plan sponsor discovered that some employees who were eligible for the employer incentive and Match did not receive it. I believe the employer contribution is a taxable event however the plan sponsor feels its only reportable income similar to employer paid health insurance is that true? Thanks

Current pay period 05/01/202022 – 05/15/2022 – The plan is terminating effective 05/11/2022 and hence the contribution should only be for the days from 05/01-05/11. but I'm not sure how the short plan year will be calculate

Hi, Plan is terminating due to stock sale - the sale date is 05/13, the plan will terminate by 05/12. The term date is 5/12 (thurs) and pay date is 5/13 (Fri) terminating plan will deduct/withhold the contributions on 5/10 (tues) I believe they can still post to the term plan since the deductions were withheld prior to the term date correct? or is it pay date driven? Thanks

Thank you!

yes, its the old company that is paying them. what in case if it was the new company what will be the repercussion?

Yes, currently they are with the acquired company and as of 05/01 they will become part of the new company. The acquiring company has asked to terminate the plan ( Old acquired). its only a asset sale.

Hi, I have a plan that is terminating due to asset acquisition, the sale date was 12/31/2021 however they had a transactional service agreement due to which the participants are contributing until 04/30/2022 and on 05/01/2022 there will be part of the acquiring company plan. The termination date will be 04/30/2022, since the part are still contributing into the plan we will not be able to start the termination process. When there is a TSA I thoughts its only for administration reason but did not know the part could contribute into the plan, can the contribution continue? Thanks

Thank you!

Any thoughts on this one?

Ok, let me check that.