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DB change of Sponsor to his New LLC


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Client is a single member LLC organized under the laws of the State of New York. The LLC sponsors a defined benefit plan.  This LLC is winding down and the owner has formed a new LLC organized under the laws of the State of Florida.

Looking for some sort of sample Resolution for the existing defined benefit plan now be sponsored by the Florida LLC and the assets and liabilities of said plan be the responsibility of the new LLC.

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Do you use a pre-approved plan doc? Can you ask that provider? I think most have some kind of amendment system to generate a short amendment to change the Plan Sponsor. Is the EIN changing? If yes, there is a place to report the sponsorship change on the 5500.

It might also be easier to just amend the Plan to have the FL LLC as an adopting employer (that seem a clear CG), then end the participation of the NY LLC when it dissolves and have the FL LLC take over as lead adopter.

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It has been happening a lot and that is the exact approach we have been taking - just throw all the entities into the Plan, check the CG box and change the adopting ER/main entity to be the most recent one.  It requires participation/joinder agreement for other/old entities.

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