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Showing results for tags 'terminate'.
Found 2 results
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We have a client that sold substantially all of its assets (everything but the pension plan) in an asset sale to an unrelated buyer. Company is no longer an ongoing concern but the prior owners are trying to wrap up the pension plan and terminate it. The plan is underfunded and there were zero proceeds from the sale to fund the pension (the owners also got nothing from the sale, the sale proceeds were only sufficient to pay off bank loans). The PBGC is involved and we are trying to get direction as to whether they will take over the plan and wrap it up but they have been "examining the case" for months with not direction. In the meantime, the company continues to file Form 5500s and obtain plan audits....further eroding the plan assets and excise taxes are accruing due to funding shortfalls, etc. Any recommendations on how to terminate this plan and wrap it up?
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I have client that is planning on terminating their cash balance plan. If participants in a cash balance plan accrue the benefit after 1000 hours, and the plan terminates 9 months into the year, are they only entited to 9/12 of a benefit? If so, we will wait until Decemebr 31 to terminate, if not we will start the process now. I know for profit sharing plans, if the plan terminates 9 months into the year, the max profit sharing of $52,000 is reduced to 9/12 or $39,000. Thanks
