Company A owns 60% and Company B owns 40% of Company C. The employees of Company B are no longer employed by Company B but are now employed by Company C. Company B sponsored a 401k plan previously. New Company C started sponsoring a 401k plan that allows rollovers. Both Company A and B still exist and neither hs employees. All employees from Companies A and B are now employed by Company C. Do the employees of Company B have a distributable event?

Have a "splitting hairs" question. Plan document reads:

(6) Return to employment. A Participant may not receive a distribution based on Separation from Service, or continue any Installment distribution based on a prior Separation from Service, if, prior to the time the Trustee actually makes the distribution, the Participant returns to employment with the Employer.

At issue is the meaning of the phrase "Participant returns to employment" in the last sentence. I contend that the employee has returned on the date he or she begins working. I base this on the fact that his/her re-hire date is the date he/she begins working, not the date called. Another party interprets that the employee has "returned to employment" if he or she has been notified they are being called back to work. A distribution was in process to the terminated employee. Before the funds were paid out, both parties were notified that the employee had been re-hired with an effective date three weeks in the future. I contend we should not stop the distribution. The more conservative party (who by the way is very highly regarded and I have the utmost respect for) states that because we know he will be rehired, he has "returned to employment" and we should stop the distribution. Who's right?

This question relates to terminating a vanilla C-Corp employee stock bonus plan (ESBP", not an ESOP) that is almost entirely invested in closely held employer stock. A 5310 application has been pending with the IRS since September. The company wants to give the participants the choice they've had in the past (as called for by the plan) of taking plan termination distributions in cash or in stock. The Company would like to redeem shares from the Plan to raise whatever cash is needed to meet the participant elections. There are non-employee shareholders, so can't compel sale of the stock.

Are they required to not only get an independent valuation but also to appoint an independent trustee to negotiate the redemption price and make a good faith determination that the plan is being treated fairly and receiving "adequate consideration" (not less than fair market value) for its shares? Is this to be as of the date of the redemption sale? If so, can the redemption sale take place before the date of distribution? What are the mechanics of doing that? Can the participants make their election now but advise them if they elect cash their shares will be redeemed at the fair market value of the stock on the date of actual share redemption as determined by the independent trustee and an independent valuation?

Is anyone aware of a way to request the IRS to provide a copy of previously filed 8955-SSAs? We have a new client who wants to make sure they have D'ed everyone that they A'd as far back as possible (obviously just the ones who have closed their accounts). They don't have copies internally and the prior provider sent the last couple of years of filings, but that's it.

I have a 401k account that was setup through a divorce QDRO order. I've been making periodic minor partial withdraws from this account for nearly 4 years. The latest request for partial distribution was denied. The plan provider is claiming that the plan does not allow for partial distributions and that the previous withdrawals were an "oversight" on their part. They say this "plan rule" can be found in the Summary Plan Description (which I promptly download from them). As I see it, the SPD does NOT spell out any rules regarding partial withdrawals for plan participants. I've been polite and I asked them to point out exactly where the rule was... and they could not. They then claimed it's forbidden according to the adoption agreement with the plan administrator and that they're legally bound to abide by it. Do I have any recourse?