Successor Plan

[dan.jock]

Sole prop terminated DB plan in 2015. In 2016 he wants to start another plan in a 51% / 49% partnership. Same business. Prior plan had a 10% formula but comp wasn't maxed out. I think his 415 limit should be offset by prior plan benefits based on my understanding of "who's the employer." even though he owns less than 80%. Am I off there?

If I'm not, I think I'm OK to count years of service for the 415b1B limit but can I count years of participation for 415b1A? I'd like to not count it as a predecessor employer and start YOP and 415 all over again. However, if I have to offset by prior plan benefits, shouldn't I then get to use years of participation? It seems I'm in a catch-22. If I can't then there is no benefit accrual for many years...which seems outside the spirit of this reg so I must have something wrong.

[dan.jock]

OK, so after studying this ad naseum, I'm 100% sure service with prior entity is includable in the benefit formula. I am also sure that I cannot start 415 all over again under the new entity's plan. The question was whether I can count years of participation for the 415 dollar limit. The answer is yes as long as my document credits participation service for the back years which I think it can based on the successor employer language of final 415 regs.