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Company X is starting a new 401(k) plan effective 1/1/2008. The employees of Y LLC participated in a 401(k) plan for which all future contributions were frozen. Company X and Y LLC are in the same affiliated service group. If Y LLC terminates its 401(k) plan, I understand that the Y LLC participants' account balances could not be rolled over into the Company X 401(k) plan because it is considered a successor plan. However, are the participants of Y LLC precluded from making rollovers into IRAs?

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