Resolution to terminate question

[Richard Anderson]

Plan Sponsor signed a resolution to terminate a 401(k) back in 2003.

Every year since 2003 the Form 5500 has had the yes box checked for "Has a resolution to terminate the plan been adopted during the plan year or any prior year?". No distributions from the plan have ever been made.

I assume that the 2003 resolution to terminate is no longer valid.

Any reason the yes box should not be checked going forward?

[ETA Consulting LLC]

If it is a 401(k) plan, then plan termination is not a distributable event when the sponsor maintains a successor plan. So, not sure if that is the case, but you'd typically want to ascertain a reason why the assets were not fully distributed within 12 months.

Good Luck!

[Bird]

I suppose if nothing changes then it would be accurate to continue checking the "yes" box, even though that resolution is essentially invalid at this point. I'd probably do a resolution formally revoking the prior resolution and start checking "no".