ERISA-Bubs Posted February 29, 2024 Posted February 29, 2024 We are a tax-exempt entity ("A"), merging with another tax-exempt entity ("B"). Both A and B have 457(b) Plans. We are concerned the merger will trigger distributions under B's 457(b) Plan. The B Plan provides for distribution upon Severance from Employment. According to the regulations, a severance occurs when the participant has a severance from employment with the eligible employer. Eligible employer is defined as the tax-exempt entity that establishes the Plan. Can A just take over the B Plan and treat it as if no severance occurred? A did not "establish" the plan, so maybe not? What are our options here? Thank you.
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