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Posted

One of the adopting employers in a controlled group wants to discontinue as such. Is this the equivalent of a termination for that adopting ER? Can the participants (401k and match money) receive distributions?

Posted

Oh man, what a can of worms!!

Can you use the SLOB rules to keep them out of testing? If not then they will still be in all testing creating problems for the rest of the group!

Why do they want to deny participants the ability to defer? It it because the match is too costly? Maybe they can reduce their match - need a (billable) study to check that out. Make sure document will permit differing match levels.

Probably more problems too.

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