March 26, 2020
BEFORE YOU ACT ON EMPLOYEE BENEFITS BECAUSE OF COVID-19 STRESSORS, CONSIDER:
If you are considering terminating your 401(k) plan to end contribution obligations.
This could have adverse consequences since the “successor plan” rule in IRS regulations currently prohibits covering the same employees in a new plan for 12 months following the termination. A plan termination also requires full vesting…