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Posted

Client has sold the assets of their LLC, employees received their last paycheck 9/2/2025 and were obviously notified of the plan closing.

The business is not closing, and the new owners do not want the responsibility of the existing plan.

Can the plan termination date be 12/31/25 even though the employees were off payroll earlier?

In order to calculate the employer contribution, obviously a P&L is needed; I have not yet seen a P&L for less than a 12 month period.

Posted
17 hours ago, Bill Presson said:

If it’s an asset sale, the plan can continue as long as the employer wants it to continue. 

We have had similar situations where the plan continued for a time so participants had more time to pay off/down loan balances.

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