PS

Hi, When a plan is terminating, should there be an amendment to terminate the plan? or will a BOD resolution suffice? Thanks

Hi, Should the PS send in the SMM once the plan has terminated, when should they send it? Thanks

Thank you! that helps.

They have been using the funds to pay invoice, so there is no misses. Since there is a balance of $78000 in the forfeiture and the plan document only states they can use it to reduce PS Cont and fee which they will do, post which the forfeiture will still have balance and I'm wondering if they can have it re-allocated as well if so will an amendment be required?

Yes, the plan document states it can be applied to reduce PS cont.

Yes, they will be paying off the fees and also be doing a match. Post which the plan will still have balance and since plan document does not state if residual balance in the forfeiture can be re-allocated can the PS still have it re-allocated? or will this require a Plan amendment.

Hi, One of the 401k plans that is terminating, the plan sponsor has a huge balance in the forfeiture account. The plan document does not states if the balance in the forfeiture can be re-allocated to the eligible participants. I believe they can have the funds re-allocated however will this require a plan amendment since the plan document does not states anything about this. I thought IRS permits re-allocation for terminating plans isn't? Thanks

Rollin is allowed.

I need to check if "T" status part can make an inbound rollover into the plan.

Hi, Participant had taken a CARES Distribution and had sent a cashier check ( repayment of the CARES Distribution). Th plan is terminating and the participants status was flipped to "T" and since the part has a "T" status in the plan, can this check be posted into the terminating plan? or an IRA account? If we can not post it into the terminating plan, is there a reason why we cant do it? Thanks

thank you!

cash

Hi, The 401k plan that is terminating, there are few participants who have balance from prior ESOP deferral, Match. Will I need to follow the normal plan termination ( 401k plan) or since they is balance from the prior ESOP plan I need to consider anything else? Thanks

Yes, I believe so.

We only prepared it in the past, with the amendment I believe we will now file it as well. Thank you.

Hi, What scenario will fall under the QPLO. Plan is Terminated, Participants are Terminated On or After that Plan Term Date; Loans are Offset as part of plan action to close out the assets on the plan (within one year of part’s term date): When participant defaults on the loan after termination but less than one year from termination is it a QPLO? Can Defaulted loan be a QPLO? I though only active/current loan can be a QPLO. 2. Plan is Terminated but not Frozen; Participants are Active and able to Contribute and Make Payments on Loan: If the participants are able to continue to make loan payments after the plan has terminated, a resulting default will not be a QPLO because the participant had the ability to make payments but did not, is that correct? Thanks

Agree, but I believe the testing and 5500 will need to be prepared and filed by the record keeper correct?

Sorry, yes its 3 (16). Let me check the agreement.

Hi, One of the plan is terminating due to bankruptcy, the company is in the process of implementing the 3(16) services how does that change the plan termination process? will the record keeper company will need to do things that is normally done by the plan sponsor? We only prepare the NDT and 5500, will this needs to be filed by us in case the 3(15) service is implemented. What our responsibility will need to be taken care? Thanks

Hi, One of my client is terminating a plan that is part of a controlled group. Company (A) is the parent company, company (b) is the entity, there will be a spin off of company (b) and once the plan is set up and funds moved from company (A) to the spin off plan, post that the plan will terminate. Now question how do they determine what the termination will be for c ( Spin off ) plan? Also I believe the parent company will need to amend the adoption agreement, by removing company (b) from the document correct? Thanks

Thank you!

Some of the participants were terminated in 2017-2018, however the plan is terminating in 2021 do these participants still need to be 100% vested? I believe YES since they still have balance in the plan.

Hi, When a plan is terminating as per IRS all participants would require to be 100% vested, will this included both Terminated and active participants? one of the plan that is terminating has participants terminated back in 2020, client feels these participants should not be 100% vested and only active participants need to be 100% vested is that true? Thanks

The Estate administrator remains non-responsive, cant an IRA be set under the estate of the deceased just like the way it would have been set under the 401k plan? Estate of XXX C/O, Administrator name. Thanks

Hi, One of my client is terminating and there is one deceased Estate account, The participant deceased in 2020 and since there was no beneficiary the deceased estate became the beneficiary. Estate beneficiary account was set, since the plan is Terminating now the client has informed the Estate Administrator to move the funds out of the 401k plan however the administrator remains unresponsive, given the fact the client has done all their due diligence and since the administrator remains non-responsive can the funds be rolled over to an IRA account? Can a deceased estate( beneficiary) account be rolled over to an IRA? if no any reason? Also the deceased was from the state of Indiana, so is there anything particular that needs to be considered looked into? Thanks.