Dental practice sold - final employer contributions

A dental practice was sold in an asset sale.  Original plan is terminated however the seller has outstanding employer contributions to be made including a profit share determined on payroll information up to the sale/termination date.  The new entity is telling the seller that they cannot make any more contributions to the terminated plan since the participants are now all active in the new entity plan.

Can anyone assist with cites that support the notion that outstanding Employer contributions can most certainly be made to the seller's terminated plan?   The client will be asking the new entity for cites as well.

Thanks in advance.

If it was an asset sale and the seller retained the plan, why is the buyer involved at all? For purposes of the Plan it sure sounds like you have two unrelated employers which is probably part of the reason it was an asset sale in the first place.

The employees were terminated by seller and rehired by buyer. Whether buyer grants service with seller to the employees or not is up to them and the terms of buyer plan, but what seller does with Seller Plan should not be a concern of the buyer.

At least as far as I understand asset sales but maybe I'm missing something.

13 hours ago, Lou S. said:

what seller does with Seller Plan should not be a concern of the buyer.

Right. Any citation would be a complicated and convoluted review of controlled group rules. One has to wonder what would make the buyer opine on this anyway.

Earlier this year, I had the same situation and deposited the Profit Sharing after the Asset Sale date. Buyer did not object.

Thanks all.  I too have had this same situation and never had objections from the buyer's side.  As everyone mentions, the buyer has nothing to do with the plan at this point.  This may be in the "a little knowledge can be a dangerous thing" category on someone's part...