PS

One of the Plan sponsor changed their Non-prototype plan to a prototype 401k plan, there also have a ESOP plan with a different record keeper. The plan sponsor failed to amend the plan document when they changed it from Non-Prototype to Prototype. The Plan sponsor now sent us the document stating they have amended the plan to include ESOP feature effective 07/31/2021, I believe they cannot do such an amendment on their own and it should be done by us since we are the record keeper for the 401k plan correct? The plan sponsor states they were advised by they lawyers that when they added the Roth provision for ESOP purposes it required creating a KSOP. they were also told that this required (per government rules) both 401(k) and KSOP features be captured in a single document. They cannot be separate documents. I've never encountered this before any thoughts how we can proceed with the termination on the 401k plan? Thanks

Thank you! Let me check the plan document.

Ok, thank you.

Hi, A terminating plan the plan sponsor terminated the plan as of 09/05/2021. All contribution were stopped, the termination activity stated as of the term date were all part status every changed to term in the plan and everyone became 100% vested and also communication was sent out to the part's about the term part and asking them to take action on their account balance. The forced distribution is set for Dec-2021, however now they advisor has got back asking with the term date can be changed to a future date 10/15/2021 since they would want to allow contribution for few of they employees. Can the term date be changed now and contribution be allowed? what will be the repercussion.

Thank you 🙂

Is there any document that I can refer since my client is looking for some kind of reference material on this.

That's what I thought, thanks for confirming.

Hi, The plan year end in 12/31 however since the plan terminated in June it will be a short plan year, so will the client still need to do the True-up? I believe YES please confirm. Thanks

Yes, the communication and forms will be sent. but if they don't respond can it be rolled over to an IRA account?

Hi, One of the terminating plan there are few participants with balance in the MPP source, this was from the pervious plan. The plan has elected for optional, so if a participants does not take action can the plan sponsor direct to have the funds rolled over to an IRA account for the ones who have balance in the MPP source? or should it be an Annuity? Thanks

Thank you! They intent to change only the company name and not the plan name. Yes, I was a little concerned about 5500.

Hi, One of the terminating plan has been advised by their counsel to have company name changed as of the effective term date. Will this require an amendment? since they want the 5500 and all filing to be done with the new company name hence wanted to check if a plan amendment is required. Thanks

Yes, I agree and I'm aware Millennium Trust does accept but here the the direction is to rollover to Schwab and I believe they set up two IRA's. Thank you!

Hi, One of the terminating plans has after-tax and funds of all non-responsive participants is to be rolled over to an IRA account. Since few part's have funds in after-tax, I believe the after-tax money will needs to be put into ROTH IRA and the earnings into Traditional IRA?

Thank you!

Hi, Have a terminating plan and I don't believe the plan went through an amendment regarding the UNITED STATES v. WINDSOR Act, now that the plan is terminating will it require an amendment. Thanks

So I believe a 5500 is required?

Thank you! Since we have crossed the extended period I believe participants will not be permitted to take the CARES Distribution?

Hi, When a 403(b) plan is terminating is there an exception they need not do 5500? example if the plan was set up in 2005 and has only 1 participant will a 5500 be required once the plan goes to zero? Thanks

Hi, Can participants still take CARES distribution? I thought June 2021 was last. Thanks

Thank you!

Thank you!

My apology! Plan Sponsor ( PS)

I mean send SMM.

Defined Contribution. I generally come across PS asking if a Plan amendment is required since the plan is terminating.