Partial Plan Termination and liquidation allowed?

[JennFC]

Client has a deferred compensation plan with employee elective deferrals and employer nonelective contributions that they are looking to terminate for various reasons, but they also want to adopt a new long-term incentive plan that would be aggregated with the employer nonelective contributions under the plan aggregation rules in 1.409A-1(c)(2).  Can they terminate and liquidate the employee elective deferral portion without terminating and liquidating the employer nonelective contribution portion? 

If these were two separate plans they could clearly terminate just the one, I'm just not sure that would work since they are in one plan document.  Thoughts??

[XTitan]

Should be fine as long as you follow the voluntary plan termination and liquidation rules (1 year/2 year/3 year) for all elective account balance plans and leave the non-elective account balance plans alone.