Jakyasar

Hi all Sponsor wants to terminate the services of the vendor (or provider/platform) and wants to move another one. By mistake, tells them to terminate the plan i/o telling them that their services are terminated and assets to be transferred to another vendor (not well informed nor was contacted by anyone - you get you pay for). Vendor terminated the plan in April 2019 but assets still not distributed - I believe the sponsor signed a resolution for the plan termination rather than contract termination. Can the sponsor still undo the termination with no issues as to the continuance of the plan? It is a 1 year old plan. any other corrective measures that will be required? No idea about what happened to the deferrals, just finding out the facts. Vendor also tells the client, even if they move the assets to another vendor/platform, they will get a 1099R?? How is this possible there is no distribution? Your comments are appreciated as well as any insights. Thank you

Thank you for your replies. I am assuming that item 3 is 3% and not 2%, correct? If they want to stay with the SH match where the top heavy is automatically satisfied, because of the combo plans, excluding them from the DB plan will still require the participants to get at least 3% (plus whatever is necessary for the gateway), correct? The way i see this, there is absolutely no advantage staying with the SH match, if any. Thank you again for your comments.

Never dealt with the following as always use 3% non-elective SH. Existing DC plan with 401k+ADP safe harbor match+PS options (no ps contributions ever made) 10 eligible, only 4 deferring thus only 4 getting SH. Passes top heavy on its own. Want to add a DB plan and need to combine for all testing and top heavy. If a participant is in both plans and not getting any allocation under the DC plan because not referring, how is the top heavy allocation determined? If a participant is excluded from the DB plan and also not getting a SH because not deferring, how is the top heavy allocation determined? Thank you for your input.