Dental practice "sold"

[pmacduff]

Dentist is retiring and another dentist in the office is taking over the practice.  New EIN and Employer name.   Can the existing 401k simply have a change in Plan Sponsor/EIN?  What if the retiring dentist has receivable contributions under his practice name/EIN that will not be paid into the plan until after the change? 

[Bill Presson]

Yes, the new practice can adopt the plan as the plan sponsor. Have old EIN adopt as participating ER.

[Bri]

I'd also surmise that the change in sponsorship comes with assuming all the plan's assets AND liabilities (meaning, the pending receivable contributions).

[pmacduff]

Thank you for the responses.  The receivable contribution is the 2022 profit share declared by the retiring dentist and he will be funding that from his practice's account.   

[Always Complicated]

We generally prefer, termination of the old plan...avoids potential baggage of past defects.