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Showing results for tags 'successor plan'.
Found 4 results
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Question about mergers/acquisitions and successor plan rules. Company A and Company B are a parent subsidiary controlled group and both participate in A's 401(k) plan. Company C buys the stock of Company B. Company B immediately ceases participation in the A's plan and becomes a participating employer in C's 401(k) plan. Company C refuses to accept a trustee to trustee transfer of assets and liabilities for B's employees from A's 401(k) plan, nor will C agree to a spinoff and merger on behalf of B's employees. I wouldn't think B's employees would be eligible for termination distributions from A's plan until they terminate from Company B, right? Can Company A spin off the portion of the plan that holds B's employee's balances, terminate it, and pay out the balances even though B is now a participating employer in another 401(k) plan (C's plan)?
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I looked every where for this so sorry if this is a repeat. The employer was part of a PEO, Multiple Employer Plan and has spun off into their own plan 401(k) plan. Is the new plan considered a successor plan, and therefore cannot use the use the 3% Prior Year average available for the first plan year? Or is the new plan considered a new plan?
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A new client has terminated and distributed the assets in a previous 401k plan. Does the 12 month rule begin once the assets have been distributed or once the final 5500 is filed?
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Company had a minority ESOP that they terminated over 2 years ago when new management came in to turn around the company. They now want to start a new ESOP and sell 100% to the employees. Can this be done? Any successor plan rules to be concerned about (they seem to really apply to 401k plans). Thanks.
