Plan Termination
The process of terminating a tax-qualified plan is sometimes more complicated than the year-to-year operation of the plan itself. The IRS regularly audits terminated plans. Failure to correctly terminate a plan can result in the assessment of taxes and penalties.
We assist with the entire process of winding-up the operation of a plan to submitting required IRS and PBGC paperwork and finally distributing the plan’s assets. If you are audited, we can represent you before the IRS.
Our plan termination services include:
- Preparation of amendments and resolutions (for review by legal counsel) to freeze or terminate the plan
- Preparation of plan amendments (for review by legal counsel) necessary to bring plan into compliance prior to termination
- Drafting §204(h) notices that inform participants of the intent to freeze or terminate a plan (for review by legal counsel)
- Drafting Notice of Intent to Terminate (for review by legal counsel) in compliance with PBGC requirements
- Drafting employee benefit calculation and information notices
- Completion of IRS Form 5310 and the final Form 5500
- Completion of PBGC Form 500, Schedules EA-S and REP-S and required attachments
- Calculation of final benefit amounts and preparation of distribution paperwork
- Completion of PBGC Form 501, post-distribution certification
- Completion of Forms 1099-R and 945, if requested
- Representation before IRS and PBGC auditors, if necessary
Contact us today if you would like Independent Actuaries, Inc. to handle your plan termination.