DC Plan "Un-termination" -- Part II

[Guest EMC]

This is a follow up to the thread started last Fall regarding "un-terminating" a DC plan (thread started 10/2/00). BACKGROUND: the plan sponsor of a 401(k) plan has executed board resolutions "terminating" the 401(k) plan as of Date X, vested plan participants 100% as of Date X, amended the plan for legislative changes and received a determination letter, BUT has made NO distributions yet. The plan sponsor would like to "un-terminate" the plan before making distributions and begin allowing deferrals, etc. again

I was hoping that someone might have some additional insight, cites, or have had informal or formal comunications with the IRS on whether or not this presents a qualification problem for the plan (assuming the 100% vesting in benefits at "termination" is not going to be changed).

What is the risk in "un-terminating" a DC plan for which there are board resolutions authorizing the termination, but where no distributions have been made at all and all participants will remain 100% vested?

[david rigby]

Here is prior discussion:

http://benefitslink.com/boards/index.php?a...=ST&f=19&t=5241

http://benefitslink.com/boards/index.php?a...=ST&f=19&t=3735

http://benefitslink.com/boards/index.php?a...=ST&f=19&t=3725

[Richard Anderson]

This may be the thread EMC was referring to:

http://benefitslink.com/boards/index.php?a...=ST&f=19&t=7343