401a plan termination notice

[Guest byoung]

What is the time frame which particpants must be notified when terminating a 401a plan. When terminating a plan what are the things to be careful about.

[david rigby]

Such a big question. And open-ended.

Many things of concern, including

- whether terminating the plan is the best course of action,

- what action is leading to termination?

- is bankruptcy an issue?

- is a collective bargaining agreement relevant?

- any potential violations of plan provisions and/or regulations, and how significant, (for example, top-heavy or non-discrimination rules)?

- any insurance contracts involved?

- any unpaid ER contributions?

- any unpaid EE contributions?

- is plan sponsor being acquired?

- is an audit required?

- all 5500 filings up-to-date?

- nature of the asset investments, and how easily they can be converted for distribution.

Etc. I probably have omitted many items. Consider engaging an expert who has done this before?