eilano
Jun 29 2006, 10:21 AM
Company B terminates defined contribution plan. Company B is owned by Company A and part of a controlled group. John Doe worked for Company B now works for Company A who maintains a defined contribution plan also. Under a regular plan termination, John Doe would be eligible to receive a distribution, however, since he works for Company A, he would not be eligible to receive a distribution due to the successor plan rules. Is there any way John Doe could receive a total distribution from Company B's plan?
namealreadyinuse
Jun 29 2006, 11:04 AM
1) Don't let B employees participate in A's plan.
2) Amend A's plan to allow in-service withdrawals of all but 401(k) money under the 2/5 year rule.
3) Fire Mr. Doe.