Excise tax upon reversion

[Guest Quacka]

If a DB plan, long frozen, "ends" after the last participant dies, can the remaining assets revert to the employer? Would the excise tax apply in that case? And would the reversion be subject to corporate income tax as well? Thanks.

[mbozek]

If a DB plan, long frozen, "ends" after the last participant dies, can the remaining assets revert to the employer? Would the excise tax apply in that case? And would the reversion be subject to corporate income tax as well? Thanks.

Excise tax applies to all terminations occurring after Dec 31, 1986. Corp income tax applies as well as 50% excies tax