Search the Community
Showing results for tags 'related rollover'.
Found 3 results
-
Two employers (A and B) under same control group each have separate plans (Plan A and Plan B). Plan A terminates because employer A shuts down and many participants start working for employer B. Most participants rolls assets from terminated Plan A into Plan B. Plan B has predecessor language for eligibility and vesting for participants from Plan A. They were given opportunity to take their balance or rollover to IRA or another qualified plan. Question: Are the rollovers from Plan A into Plan B considered "related" rollovers for top-heavy testing? -
We have a key employee (5% owner) whose wife passed in late 2014. He took distribution of her account balance in 2015 and rolled it over within the same plan. Would the distribution from her account to his be considered a "related" rollover for calculating top-heavy status as the $ remains in the plan? If yes, would it drop off after 1 year?
-
A veterinary practice was a sole proprietorship. The retiring veterinarian sold the practice to a young veterinarian. The retiring veterinarian's 401(k) plan was terminated, and participants were given distribution paperwork when it was time to wind down the plan. The practice has continued under new ownership (sole proprietor), with a new EIN, etc. From an employee perspective, all employees have remained and continued their service as if nothing had changed. The new veterinarian started a new 401(k) plan immediately, so there was no gap in providing a retirement plan benefit for the employees. Some employees had elected to roll their funds from the prior practice's plan into the new plan, and others did not. For those employees who did elect to roll their funds from the prior practice's plan into the new practice's plan . . . is that considered related rollover money or unrelated rollover money? I know this question is beyond basic, but I can't find any information that points directly to this kind of situation. Thanks!
