Trying to get rid of LLC in plan

[AKconsult]

We have a small plan with 2 participants (dr and wife). Part of the assets are held in LLCs. These LLCs have not been recently appraised because doc didn't want to pay for appraisal. The Dr. has closed his practice and wants to terminate his plan. However, he can't find anyone to buy the LLC interests or any custodian who is willing to hold the property if he tries to transfer it to an IRA. Any suggestions on how to close out this plan? We have called the local IRS retirement plans specialist and even she didn't have any suggestions.

[movedon]

How about a taxable in-kind distribution of the shares of the LLCs, along with enough cash to cover the withholding?

[QDROphile]

The plan will need an appraisal for determining the amount for reporting and calculating the wihholding. There are IRA providers out there who will hold LLC interests for a price. The Dr. sounds like someone who doesn't like price.

[AKconsult]

This might work. We are going to tell client to run this by attorney. Thanks.

[AKconsult]

Any suggestions on IRA holders who will take the LLCs? This is exactly what we are looking for. Dr is willing to pay for this, we just can't find any company that will do it.

[Jim Chad]

Millenium Trust might 630-472-5306

[Bird]

If the client has a good relationship with a local bank, tell him to talk to their trust department. This worked great for a client of mine...it was a number of years ago, and banking has changed a lot, so it might be a long shot, but worth a try.

[QDROphile]

The plan still needs a value of the assets for reporting the distribution even if the distribution is rolled over directly. But one might apply the two part test to decide what standard to use for the valuation.