Terminating an old Profit sharing plan

[rfahey]

I have an old profit sharing plan ( sole proprietor ) for a physician who left private practice several years ago.

Prototype document.

There is still one employee in the plan.

WE want to close it out and rollover to an IRA for him ( and this is also what the employee wants to do )

Other than sending the tax notices and distribution forms to each of them and doing the distribution to close out the accounts is there anything else that needs to be done ( plan amendments, notices to anyone, etc ) ? Do they need a spousal waiver for a profit sharing rollover ?

I know a final 5500 will be needed.

Just wondering what else I need to do to avoid any IRS/DOL problems down the road.

Many thanks !

[ESOP Guy]

You HAVE to prepare an amendment to terminate the plan at a minimum.

It sounds like someone could use the services of a good TPA or lawyer. They can guide you through the process. One might want to get a D Letter on the termination. These are the things that are coming to mind at the end of the day and I am NOT saying this list is complete.