Company A wants to buy Company B and everyone wants to terminate Company B\u2019s 401(k) Plan. In an ideal world, this should be done before the closing date of the deal. If A has a plan and wants to terminate B\u2019s plan, that successor plan rule could be a problem since if you terminate B\u2019s plan and distribute assets, barring a very minor exception, A can\u2019t have a plan for a year.<\/p>\n
That\u2019s why with any stock purchase with existing 401(k) plans, an ERISA attorney needs to be contacted.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" Company A wants to buy Company B and everyone wants to terminate Company B\u2019s 401(k) Plan. In an ideal world, this should be done before the closing date of the deal. If A has a plan and wants to terminate … Continue reading