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Termination of 401(k) and move to SEP


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Guest Jim Jesikiewicz
Posted

May I preface the conversation that we never terminated a plan.

I have a plan sponsor that would like to terminate his 401(k) plan because he wants to get at his money (100%) which is a substantial peice of cash. Regardless of the tax consequences he would like to move everything to a SEP and keep money flowing to the employees.

What flags should I raise before moving forward?

Thank you for any assistance you may provide.

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