Plan Termination after stock aquisition

[nerd-party-administrator]

Facts: Clients company is acquired via stock sale, but TPA wasn't made aware until two months later. Therefore, there were no actions taken to terminate the plan.

Question: Since they can't really terminate the plan retroactively, what can be done at this point?

[david rigby]

Does a stock sale mean the plan is terminated?  Is there anything in the sale agreement that requires the termination of the plan?

[ESOP Guy]

Do they want to terminate the plan?  I agree with David unless something in the sales agreement requires it they can keep the plan.  It was a stock sale so the company never went out of existence.  

[Larry Starr]

8 hours ago, nerd-party-administrator said:

Facts: Clients company is acquired via stock sale, but TPA wasn't made aware until two months later. Therefore, there were no actions taken to terminate the plan.

Question: Since they can't really terminate the plan retroactively, what can be done at this point?

Not enough info.  Of course, we start with "what does the acquirer want to do?"  Since you say it was a stock sale, in fact the company was not "acquired", there was just a change in who owns the stock.  Therefore, the same issues that would always apply if your client called you today and said I want to terminate the plan apply.  Nothing special because it is still the same employer with no change.