Plan Termination -

[Gudgergirl]

Employer sponsors nonqualified plan for a single employee and qualified plan for all employees.

Employer wants to accelerate vesting under nonqualified plan and pay employee early under nonqualified plan.

I explained that they can accelerate vesting but can't pay him earlier than what the nonqualified plan provides (death, disability, age 55).

If they terminate the plan, then they could pay him 12 months from plan termination. As I was looking at the rules in 1.409A-3(j)(4)(ix)© I took note of (2) which states that the employer must terminate and liquidate all other agreements with the employee that would be aggregated under 1.409A-1©.

Would this require employer to terminate the qualified plan?