Partial Plan Terminations—Do You Have One?

What constitutes a partial plan termination? There is a rebuttable presumption that a partial termination has occurred if 20 percent or more of the participants are involuntarily terminated. The calculation is done as follows:What constitutes a partial plan termination? There is a rebuttable presumption that a partial termination has occurred if 20 percent or more of the participants are involuntarily terminated. The calculation is done as follows: … Continue reading Partial Plan Terminations—Do You Have One?

Partial Plan Terminations

A partial plan termination occurs when 20 percent or more of a company’s employees are laid off in one year. Routine turnover during the year is generally not considered a partial plan termination. To determine whether your turnover rate is routine, consider the following factors: What was your turnover rate during other periods and what was the extent to which terminated employees were actually replaced? … Continue reading Partial Plan Terminations

Retirement Plan, Funds, Forfeiture Dollars

Preparing for a Partial Plan Termination

The IRS is actively pursuing plans that may have experienced a partial plan termination. A partial plan termination may have occurred if you have experienced a substantial reduction in your workforce. Information on your Form 5500 filing may indicate a possible partial plan termination and may cause the IRS to investigate to ensure that proper procedures are being followed. The determination of a partial termination … Continue reading Preparing for a Partial Plan Termination