NOTICE OF CHANGE FOR SEMINAR REGISTRATIONS:
To register for Relius Education seminars and conferences, please login or register for a new login account before proceeding. For more information, please see the Benefits of a Relius User Login Account. For assistance, please contact Client Services at 800-326-7235, and select Option 6.

Partial Termination and Plan Termination [2018]
Presentor: David Schultz Recorded Date: 9/24/2018 Duration: 60 Min.

Description
during a live presentation given on September 24, 2018 at 12:00PM EST.
*******************************************************************************

In today’s job market, mobile workforces are the standard and businesses have been downsizing. An often overlooked requirement that may be triggered with a downsizing is the partial termination rule. You can be sure the IRS is not overlooking the rule. They monitor the issue carefully through the Form 5500. A failure to comply with the requirement can result in a qualification failure and an expensive correction. A plan that doesn’t apply the rule correctly will have to make a corrective contribution to those participants who were improperly forfeited, and probably will have to pay a sanction to the IRS. The statute indicates that it is a "facts and circumstances" test but the IRS and courts have provided guidelines and presumptions.

This program also addresses the necessary steps to terminate a plan and the consequences of a plan termination. Practitioners generally know that the plan needs to 100% vest participants upon plan termination. However, many practitioners are unaware of how far back a plan must go in vesting participants. The speaker discusses the necessary amendments that need to be adopted upon plan termination, and using case studies, he demonstrates how to apply the rules.

Topics will include:
  • Partial termination presumptions
  • Turnover rate
  • Employer initiated terminations
  • Vesting on plan termination
  • Plan termination steps
  • Plan termination amendments
  • Determination letters
  • Personnel records
Prerequisites:

There are no prerequisites or advance preparation for this program. No prior experience needed.

Level: Overview
Instructional Delivery Method
Group – Internet-Based

NASBA Field of Study: Taxes

Speaker: David Schultz, J.D.

Objectives: After participating in this program, an attendee should be able to:

  1. Analyze whether a partial termination has occurred
  2. Determine the plan’s turnover rate
  3. Identify when a plan can overcome IRS presumptions regarding partial termination
  4. List the steps to terminate a plan
  5. Identify the consequences of plan termination
  6. Determine which participants must be vested on plan termination
  7. Correct a failure to vest upon partial termination
  8. Determine when to apply for a determination letter for a partial termination or a plan termination

All ownership and intellectual property rights in and relating to this website and all of its contents or any copies thereof, including but not limited to copyrights, logos, trademarks, service marks, design, text, videos, sound recordings, images, links, graphics, code, concepts and themes are owned by FIS and/or its subsidiaries (collectively "FIS") or used under authorized license by FIS. Any recording, reproduction, transmission, distribution, publication, performance, broadcast, hyperlink, creation of derivative works or other use in whole or in part in any manner without the prior written consent of FIS is expressly prohibited. Without the prior written consent of FIS, you shall not insert a hyperlink to this website or any part thereof on any other website or "mirror" or frame this website, any part thereof, or any information or materials contained in this website on any other server, website or webpage.