susieQ Posted 3 hours ago Posted 3 hours ago Company A maintains a 401(k) plan, consisting of only 1 participant, the owner. Supposedly the ER terminated this plan within the last 6 months. Assets possibly not yet distributed. Company A purchases Company B in a stock sale, within the last month. Company B maintains a 401(k) plan. Can Company A "inherit" a plan in a stock sale without violating the 12 month successor rule? If Company A's 401(k) plan assets are not yet distributed, can we rescind the plan termination and merge the Company B plan into Company A's plan? If the assets have been distributed, what options exist? Or does the 12 month successor rule not apply when the sponsorship of a plan is the result of the acquisition of a company in a stock sale? Thank you.
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