Partial Plan Termination?

[Belgarath]

This question is really academic at this point, but could apply to a future situation.

Suppose you have corporation A - a couple of doctors, or dentists, or lawyers, or whatever. They decide to go their separate ways. Corporation A will remain intact, no changes to the plan, etc.

Mr. B will form new corporation B. Some of the employees of corporation A will come over to work for him - or of course they can quit. He'll just establish a new plan. (it could be handled as a spinoff, but for  reasons not pertinent to this discussion, probably won't, and not worth getting into!)

I don't think there's any solid argument that these terminations from corporation A are "voluntary" so it seems to me that if they weren't already 100% vested, they would need to be. Any other opinions? Also, since a new employer is being established, seems like they are entitled to distributions if they choose, (cash, rollover to IRA or new plan, etc.)

[K2retire]

If the employees do not have the option of staying with Corporation A, I would agree.