Bush Retirement Plan Services

Plan Terminations

Plans can be terminated because of various business decisions: mergers, acquisitions, closure and abandonment. A termination is final when assets are distributed and Form 5500 is filed with the DOL. We review all the requirements of a termination with the plan sponsor before determining the appropriate method of action.

Because a plan must first be in compliance to be terminated, we review and correct any qualification failures prior to the termination. The DOL and IRS have procedures to follow in processing a plan termination, including:

  • Establishing a termination date
  • Ensuring participants become 100 percent vested in employer contributions
  • Notifying all eligible participants and locating missing participants
  • Completing distributions within one year of the termination date

With extensive experience in directing more than 100 plan terminations over a 20-year period, Bush Retirement Plan Services will efficiently manage a plan termination by guiding the sponsor or actively handling the many administrative responsibilities as termination manager.