Pension RC Posted December 23, 2016 Posted December 23, 2016 Is there are permanency issue with starting a plan 1/1/2016 with a 10%/year accrual and then freezing the plan effective 1/1/2017? Thanks for any responses!
Effen Posted December 23, 2016 Posted December 23, 2016 Maybe... if you are doing all that on December 23rd, then probably. If you search the board you will find several discussions about this. No one can tell you it is ok, or not ok since it is a facts and circumstances test and only the IRS's opinion matters. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Calavera Posted December 29, 2016 Posted December 29, 2016 Permanency issue usually refers to plan termination, and not to plan freeze. As Effen said it is a facts and circumstances issue. So if you have a valid business reason for a plan freeze, it most likely will not raise any problems.
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