Required Restatement for Terminated 401(k) Plan

I'd like someone's opinion on this subject.

We have a 401(k) Profit Sharing Plan that terminated on 12/31/2019.  They have still not paid out the participants even though the vendor and TPA have been encouraging and trying to help them to do so.  As this plan is now considered "on going" does it have to be restated for Cycle 3?  I'm thinking yes!

The deadline to comply with the Cycle 3 restatement mandate is July 31, 2022 so my understanding is that as long as the assets are distributed prior to July 31, 2022, the restatement is not required.

18 hours ago, sb0828 said:

The deadline to comply with the Cycle 3 restatement mandate is July 31, 2022 so my understanding is that as long as the assets are distributed prior to July 31, 2022, the restatement is not required.

Technically true, but it would still have to be amended for interim law and why wouldn't you just restate it?

The plan must be up to date in writing as of 12/31/2019.  another issue is that assets should be paid out within 1 year of the effective date of plan termination. The plan may now be considered "ongoing" due to not timely being paid out.  At minimum at this point it would be a good faith best practice to amend and restate. 

Welcome, Barry! So great to have you onboard, and your valuable contributions.

55 minutes ago, Dave Baker said:

Welcome, Barry! So great to have you onboard, and your valuable contributions.

More Florida representation on the boards 😎