Professional Firm - can dissolved Partner leave account

[TPApril]

General Partnership with individual ALC's and the main company's employees within a single PS plan.  One of the member ALC's is terminating his relationship with the firm and leaving practice but would like to leave his account within the plan. I'm not sure if that is possible without having a formal entity anymore?

[Lou S.]

Is the Partnership dissolving or just losing a Partner?

Is the Plan terminating?

If it is not terminating who will be the Sponsor?

If the Plan is continuing how can you force him out? If the Plan is dissolving then all accounts will need to be paid out.

Though why a general partner who is leaving would want to leave his funds in the Plan is a bit of a mystery to me, but not really relevant to your question.

[TPApril]

Lou - first off, thank you for your time.

The Partner has found a govt opportunity so is dissolving his practice. The firm has many partners and there is no effect on the plan which will be amended to change trustees to add another partner.

As you point out, based on signficant account balance, participant cannot be forced out, but curious about legal circumstances of retaining balance in the plan when the ALC is dissolved.

Your last point - I think the reason he wants to retain his balance is uncertainty over the new position in the long term.

[Lou S.]

Perhaps an ERISA attorney has a different view (I'm not one) but I would simply treat him as a terminated employee and a participant with a balance in the plan. I believe that would be the most conservative approach.