rollover into 401(k) plan

[Guest cculhane]

A DB plan terminated and some of the particpants rolled their balance into the company's 401(k) plan which was not subject to the QJSA rules. Is the 401(k) plan now subject to these rules? If so, does the plan need to be amended?

[Guest]

I don't think so. A rollover is a distribution from the plan, and in making the actual distribution the qjsa etc rules would have to be followed. Once it's in the 401(k), it's subject to those rules.

[Guest slt]

That's right. You may be thinking about the trustee-to-trustee rules. With a trustee-to-trustee transfer (this is not a direct rollover, but a transfer of plan assets), you would be limited by the anti-cutback rules (assuming this is not a governmental plan) and may have to preserve such a benefit.