Excess assets in a cash balance plan

[Jakyasar]

Hi

One life/owner only CB plan. 3 years old. Business is sold, needs to terminate by 12/31/2022

Plan document states any excess to be reverted to the corporation (there will be no DC plan as QRP- qualified replacement plan).

The participant is nowhere near the 415 limit and the excess, if can be provided to the participant, will be eliminated.

Can the plan be amended so that the excess can be provided to the plan participant rather than being reverted to the corporation? I am aware of the 5 year rule but always wondered it was only for switching from participant to the company. 

Thank you

[C. B. Zeller]

Yes

[chc93]

I agree with CBZeller.  Generally, DB plan documents we work with have excess to revert to the company.  This is necessary if any excess will be transferred to a QRP.  But then, we could always amend to allocate excess to participants (I think I have this right).

[CuseFan]

Yes, and agree with chc93, usually documents are set up to provide reversion because you can always amend last minute to change and allocate in the plan. 

[Jakyasar]

All, much appreciated