Frozen PS Plans

[Guest SuzieQNEC]

If a Profit Sharing plan (with no other contribution types) has not made any contribution whatsoever for at least 3 years, is it considered frozen and all participants would become fully vested? What if Forfeitures only have been allocated in that period?

[PensionPro]

Determination of partial plan termination due to discontinuance of employer contributions to a profit sharing plan depends on all the relevant facts and circumstances. If the employer has failed to make substantial contributions in 3 out of 5 years, and there is a pattern of profits earned, partial plan termination is a serious consideration.