"A (new) client sold his home healthcare company in 2023 in a membership interest sale. The business offered a Cash Balance Benefit Plan to its employees. The Benefit Plan was to continue after the sale. The seller made (on bad information) a high dollar value ($250k) contribution to the Benefit Plan after the sale was completed. The parties did not complete the paperwork to make the change of the trustee and employer under the benefit plan until the end of 2023. For the purposes of the Plan, when the contribution was made, the seller/contributor was still the 'employer' under the Plan....

"Seller believed he could deduct the contribution but was mistaken about this. He has since demanded the return of the funds many times. Buyer has not responded to the demands and threats of litigation. Although the sale of the business included the Cash Benefit Plan, that contribution was not in the Plan at the time of the sale and was not bargained for in the transaction. The Buyer has failed to comply with regulations and was dropped by the third party administrator as a result, about 1 year after the sale of the business. Client's previous attorney sent a demand letter and received no response. I did the same and was told they would be responding, and since have received no further response. If anyone has dealt with anything remotely similar or has any suggestions on proceeding, I would be grateful."