Terminated SH plan--owner owes himself SH

[BG5150]

I have a SH plan that terminated in 2015. All assets are paid out. All participants received their 3%. The 100% owner did not. What would be the ramification if he did not give himself the SH?

There is a company in name only now. All company assets were sold.

[mphs77]

The owner could waive any remaining benefits.

[Lou S.]

I believe you have technical failure to follow the terms of the Plan. At the very least I'd send the client a CYA letter informing him of his required contribution.

Now would the IRS disqualify the plan over a missed contribution to an owner? Probably not but you never know the mood of any particular auditor.