plan termination in a Control Group situation

[cpc0506]

Hello. I need some help here.

Employer A had a 401(k) Plan (Plan A). A control group existed between Employer A and Employer B. Employer B completes a participating employer agreement to parcipate in Employer A's plan.

Employer A ceases to exist and terminates the Employer A 401(k) plan as of 12/31/13. Plan A distributed the funds to all employees of both employers.

Employer B establishes a new plan (Plan B) as of 1/1/14. Does this constitute a successor plan?

Also, some of employees of Employer B have rolled their distributions from Plan A to Plan B. Is the rollover money considered a related rollover or not?

[Lou S.]

If employer B had a participating agreement why didn't they just take over sponsorship of the pkan on 1/1/14 instead of terminating the plan?

Since they are a controlled group they are considered 1 employer for pension plan purposes and yes I think you have some sucessor plan issues and improper distribution issues.

[cpc0506]

I have learned that all the funds of Employer B that were in Plan A have been rolled to Plan B. At least there have been no distributions per say.

I am not sure why Plan A was not taken over by Employer B and just renamed. Many questions, no answers....

[david rigby]

I have learned that all the funds of Employer B that were in Plan A have been rolled to Plan B. At least there have been no distributions per say.

"rolled" might be different from "transferred". the former implies a distribution.

[cpc0506]

I agree that they should have been transferred to the plan..... if the plan was even allowed to be established. I am not sure if that is even the case.