Termination of 401K in a controlled group

[PS]

Is there any website or links that will explain the termination procedure that one needs to follow when the plan is part of a controlled group.  Basically can a plan that is part of a controlled group can it Terminate?

 

 

[Bird]

The plan sponsor can terminate the plan.  Typically the other members of the controlled group are "adopting employers" (i.e. going along for the ride), but they don't necessarily have to be.  In the scenario where there are no other adopting employers, then it's easy, the plan sponsor simply terminates.  I have to say I've never had a situation where the "primary" sponsor wanted to terminate but the "secondary" sponsor(s) didn't, nor have I thought about it, and it kind of begs the question of "control"  but I'd say the primary sponsor can do what it wants.

[david rigby]

Caution.  The original Q might mean a plan adopted by one member of a controlled group but not by other members.  If one or more other members has a qualified plan, it's possible the non-discrimination testing is passed only in the aggregate.  Thus, terminating one plan might affect the other plan(s). 

[Kevin C]

There are rules for distributions on plan termination for a 401(k) in 1.401(k)-1(d).  In particular, plan termination is not a distributable event if the employer maintains an alternative defined contribution plan 1.401(k)-1(d)(4).  The definition of "employer" used takes you to 1.410(b)-9 and includes members of a controlled group or affiliated service group.

[PS]

Thank you