Successor Plan

Hi, 

Good Morning!

Looking for guidance on Successor plan. One of the terminating plan the plan sponsor intends to establish another 401k plan with a different EIN, Will this lead to a successor plan situation?  I understand if a 401k plan is set up/exists from the termination date and until ending 12 months after distribution of all the assets can lead to successor plan however I'm not sure if EIN has anything to do with the successor plan rule. 

Can an employer set up another 401 k plan with a different EIN? 

Thanks 

Are you talking about a new company with a different EIN?  Is the ownership the same?  Why is there a new EIN?

Its not a new company it will be the same ownership and I'm not sure why new EIN.  I'm not sure if they can even set up a new EIN. 

There might be legit reasons to get a new EIN but if it's the same company the successor plan rules apply.

Thank you!

I was able to get more information, they are closing business and may be starting a new one 6 months down the line and they do intend to have a 401k plan with a different EIN ( which makes senses now)  will the successor plan rule apply her since its a new company, Same ownership with different EIN? 

On 1/21/2022 at 2:26 PM, PS said:

they do intend to have a 401k plan with a different EIN

I think you mean they will have a new company with a different EIN

If same ownership, successor rules apply.  

Thank you! Will I be right in saying having a different EIN does not rule out successor plan.  The plan sponsor will still need to complete the waiting period in order to establish a new 401k plan correct? although this may not be true if it was a new ownership. 

13 minutes ago, PS said:

The plan sponsor will still need to complete the waiting period in order to establish a new 401k plan correct?

That is what the successor plan rules say, yes.

Thank you!