rcline46 Posted September 12, 2012 Posted September 12, 2012 Strange but true - I have an overfunded plan, all participants at 100% benefit and are terminating. I recall that some people brokered the sale of the company sponsoring such a plan to a company with underfunded plan(s). Does anyone still do this? If so, how can I contact them?
Effen Posted September 12, 2012 Posted September 12, 2012 I think the government effectively killed this "business". I agree it seems like a win/win, but the IRS didn't like it - loss of tax revenue on reversions. They published a few notices that you can dig up, but basically the companies need to have a legitimate business reason for the merger and that is often hard to justify with a shell company that only contains a pension plan. It isn't impossible, but my experience is that it is very difficult for all the attorneys to get comfortable. Take a look at:Rev. Rule 2008-45, Rev. Rul. 68-242, Rev. Rul. 73-534. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
SoCalActuary Posted September 12, 2012 Posted September 12, 2012 Only time I did one of these was between two parties in the medical field, so it passed the related business smell test. Pick the right group and you might get a good outcome.
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