Ownership change of existing entity

[Bird]

Corp Smith is owned by Dr. Smith. Eff Jan 1, Smith is bringing in Jones as a 50/50 owner. Corp will keep tax ID number, but change its name to Smith and Jones.

For a lot of reasons (the primary one being getting rid of self-directed brokerage accounts), we'd like to terminate the old Smith (401(k) plan and start fresh with a new Smith and Jones plan.

Smith and Jones Corp uses the same tax id number, but if you look at ownership, there wouldn't be a controlled group. I'm thinking it is the same company and therefore we are stuck (can't terminate the old plan and start a new one) but thought I would throw it out there for comments.

[12AX7]

It sounds like it's the same employer, but just an ownership change. If Smith and Jones started a company with a new EIN, then you might have to consider successor employer issues, but that doesn't seem to be the present situation.

[BG5150]

I think you can always get rid of the brokerage accounts. That's not a protected benefit.

[Bird]

I think you can always get rid of the brokerage accounts. That's not a protected benefit.

Agreed. Just getting a little tired of having that conversation; terminating the plan was actually the easiest way out.