Change in partnership

[pmacduff]

Dental practice with two dentist partnership and 401(k) safe harbor profit sharing plan. One dentist retires as of 09/30/2014 & receives a buyout from the practice. Plan will be terminating; I believe as of 12/31/2014. Younger Doc has renamed the practice effective 10/01/2014. Some staff members do make 401(k) contributions. Do those have to stop because the original partnership has ceased to exist? The staff people have remained on the same payroll with an entity name change.

[K2retire]

Has the plan been amended to recognize the new entity?

[pmacduff]

not an excuse for the Sponsor but no one was notified until the last minute of how this was going to transpire. no amendment yet regarding the new name/entity. the new entity is not taking over the plan. my feeling was that the staff should not be making contributions to the Plan from their payroll under the new name/entity.

[Bird]

my feeling was that the staff should not be making contributions to the Plan from their payroll under the new name/entity.

I agree.

[pmacduff]

Just found out (through some prodding & digging) that the EIN did NOT change; it was just a name change for the entity using the same EIN.

So....now I believe the staff is ok continuing to contribute to the Plan.

[Bird]

I didn't think a partnership could be changed to another form of entity, but whatever...

[pmacduff]

interesting. I'll do MORE digging and talk again to the CPA that was doing the partnership work.