Can a depletion of assets cause a partial termination?

[John A]

Can the depletion of most of the assets of a plan (participant with more than half of the assets of the plan taking an in-service withdrawal) cause a partial plan termination?

[Chester]

I have never heard of a depletion in assets causing a partial plan termination. My understanding is that involuntary termination of 20% or more of the plan participants can cause a partial plan termination--I have also heard that plan amendments that significantly reduce future benefit accruals can also be grounds for a partial plan termination. You would have to make sure the asset withdrawal corresponds to the restricted benefit rules in the 401(a)(4) regs.

[david rigby]

Amount of assets is not an issue with regard to plan termination.