Guest Anne D Posted July 9, 1999 Posted July 9, 1999 Company A sells off a division. As a result, about about 35% of Company A's 401(k) plan participants terminate with Company A and are employed by Buyer. Their plan assets are transferred to Buyer's plan. Buyer's plan will count the service of former Company A employees for purposes of vesting and eligibility. Is there a partial termination of Company A's plan such that the affected employees must be 100% vested, or does the continued counting of service suffice? Does it matter that Company A and Buyer were related before the sale such that the affected employees remain within the same control group after the sale? Citations helpful. Thanks. [This message has been edited by Anne D (edited 07-12-99).]
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