un-terminating a plan?

[justanotheradmin]

we have a regular 401(k) plan that terminated as of 11/15/2013. passed out notices, stopped deferrals, signed the amendment, etc. Most participants have already returned their distribution forms.

We anticipated distributions to start shortly, with assets out by 12/31/2013 and 2013 being the final year.

The plan sponsor now has changed their mind about terminating the plan. Other than the participants being 100% vested,I don't see an issue. I think the plan sponsor would need to get new deferral elections because the notice given indicated that all salary deferrals were going to cease as of 11/15/2013.

What I don't know is about distributions. We are after 11/15/2013 and participants have accrued a distributable event. The fact that no one has actually been paid out doesn't change the fact that participants have a right to take a distribution, and undoing the termination would presumably take away that right.

I seem to think there were several threads on this topic already, but I can't seem to find them.

What if they terminate the plan and then start another? I would think the successor plan rules would dictate that the participants didn't really have a distributable event, yes? or would the new plan just be disqualified?

If anyone can point me in the right direction I would appreciate it.

[david rigby]

Some prior discussions:

http://benefitslink.com/boards/index.php?/topic/3725-how-does-an-employer-reverse-unterminate-a-plan-termination

http://benefitslink.com/boards/index.php?/topic/36663-safe-harbor-and-unterminated-plan

http://benefitslink.com/boards/index.php?/topic/52385-un-terminate-a-plan/#entry226898

http://benefitslink.com/boards/index.php?/topic/8786-un-terminating-a-401k-plan/