Jump to content

Merging 401(k) plan into 401(a)?


Recommended Posts

Question re: self-correction of an employer eligibility failure (governmental entity adopting 401(k) plan).  If the employer will cease contributions to the 401(k) plan (either through a freeze or a termination) within the self-correction deadline and subsequently adopt 457(b) and 401(a) plans, is the appropriate action merging the 401(k) plan into the 401(a) plan?

Link to comment
Share on other sites

stainedglass80, I think the IRS would give you that in VCP, but I would question whether an employer eligibility failure qualifies as an "Eligible Inadvertent Failure" under Rev. Proc. 2023-43. In other words, I am skeptical that such a failure qualifies for self-correction according to IRS.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...