Guest mol Posted September 7, 2004 Posted September 7, 2004 Is it permissable to amend a 12-31 401(k) plan to a plan year running from 01-01-2004 to 09-30-2004 and then terminate the plan and pay out all participants prior to 12-31-2004? Does this create 2 two short plan years? Are you allowed to have consecutive short plan years? If the answer is no - could you process the distributions in early 2005?
david rigby Posted September 7, 2004 Posted September 7, 2004 Would it accomplish your goal to - ignore the plan year issue, - freeze the plan at 9/30/04, and - terminate it simultaneously? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest mol Posted September 7, 2004 Posted September 7, 2004 I'm not certain, the employer wants to make a profit sharing contribution for just the period 01-01-04 to 09-30-04, but the current volume submitter doc. only allows a single allocation date at year end with a last day 1000 requirement. I was thinking that if they could run a short year now they could do so but I know they want to terminate the plan and was worried they could have multiple short plan years if the assets were distributed prior to 09-30-2004.
jquazza Posted September 9, 2004 Posted September 9, 2004 Why not just amend the allocation date and requirements just for the 12/31/04 year? /JPQ
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