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Termination of BD plan and start-up of 457

Guest itrade4u2

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Guest itrade4u2

OK guys. I'm young amature and need a little help if you don't mind. I have a city-owned utility that wishes to terminate its DB plan which is over funded by about 66%. Their plan doc states that any excess funding must be proportionately distributed to employees upon plan termination. If they desire, can the city require employees to roll those all distributions to the new 457?

Also I've never terminated or started a new plan. Do I need to get an IRS approval letter to terminate and start-up? How involved is that process?

Thanks everyone!


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