Termination of SARSEP plan

[Alan Simpson]

A client wishes to terminate a SARSEP and implement a MPP. What actions must be taken, notices given, etc. for the termination of a SARSEP?

[Gary Lesser]

The provisions in the plan document regarding "amendment" should be followed. Generally, this requires a notice stating that theplan has been terminated and the effect of the amendment; that is, no further contributions will be made by the employer and that any election to defer compensation) (elective contributions will no longer be honored.