cash balance termination - client wants to restart plan

[Scuba 401]

maybe strange but the client terminated his cash balance plan and paid out a few participants who also terminated employment. a couple of years later they want to revive the plan. is it possible to un-terminate and restate the plan or just restate the plan effective January 1, 2019?  trying to avoid having a totally new plan if possible. 

[david rigby]

30 minutes ago, Scuba 401 said:

maybe strange, but the client terminated his cash balance plan and paid out a few participants who also terminated employment.  

Does this mean that some, but not all, of the participants were paid out?

[Scuba 401]

the partners of the firm were not paid but the employees were. 

[Lou S.]

A "couple year later"? Why weren't the paid within a year of the termiantion?

Who has been filing the 5500 each year?

[Scuba 401]

17 minutes ago, Lou S. said:

A "couple year later"? Why weren't the paid within a year of the termiantion?

Who has been filing the 5500 each year?

5500's are being filed. i believe the partners are the only ones left in the plan.  

[david rigby]

If "the partners" hired someone else during this "couple of years", it's possible such employee(s) should be covered by the plan.

[CuseFan]

Did the plan really terminate or was it just frozen? It doesn't sound like a plan termination because you are ultimately required to distribute all plan assets/benefits within a reasonable time and a couple of years is not reasonable.

[Luke Bailey]

Better check 401(a)(26) compliance also.

[AndyH]

Also,  were valuations and SBs done each year?   if not, there are lots of issues. 

And were benefits frozen separately from the termination action?