401(k) Plan Termination Services
Navigate 401(k) Plan Termination with Confidence
In times of significant organizational changes such as bankruptcy, mergers, or acquisitions, managing the termination of a 401(k) plan can be complex, daunting, and risky. HFG offers expert guidance and comprehensive services to ensure that terminating your company’s 401(k) plan is handled with meticulous care and compliance. Our experienced team is dedicated to simplifying this process, providing peace of mind to the company and its employees during these critical transitions.
Let’s Talk
Contact us today to discuss your organization’s needs and learn how we can provide tailored solutions to navigate terminating your company’s 401(k) plan smoothly and effectively.
Comprehensive Support for Every Step of the Process
HFG offers services tailored to support your company through the 401(k) plan termination process. Our service is designed to address specific needs and regulatory requirements, ensuring a smooth and compliant transition.
Plan Document Maintenance
We ensure your plan documents are up-to-date, align with current regulations, and meet all legal requirements during the termination process.
Efficient Distributions Management
Our team manages and facilitates distribution authorizations, making the process seamless for the employer and the employees.
Vesting Schedule Management
We handle updates to vesting schedules, applying forfeitures accurately and in compliance with regulations.
5500 Filing Preparation
HFG assists in preparing and filing the final 5500 forms, ensuring accuracy and timeliness.
IRS Determination Request Handling
We expertly manage IRS determination requests, including Form 5310, to ensure compliance and help avoid potential issues.
Force Out IRA Execution
Our team facilitates the force-out IRA process, ensuring it is conducted efficiently and in accordance with policy.
Fiduciary Responsibility Oversight
We conduct best interest rollover assessments and support in distributions, ensuring 401(k) fiduciary responsibilities are upheld throughout the termination process.
Educational Support and Communication
HFG provides an employee resource portal, disseminates participant notices, and conducts educational webinars and meetings to educate participants.
Participant Tracking and Location Services
We offer comprehensive tracking and location services for participants, ensuring all parties are accounted for and informed.
Assisting Employers Terminating a 401(k) Plan
When undertaking the termination of a 401(k) plan, we help employers through several crucial steps to ensure adherence to IRS regulations:
- Adopting a Formal Resolution: To begin the termination process, we assist with writing and a resolution that clearly communicates the cessation of contributions to the 401(k) plan. This ensures that everyone involved is aware of the decision and its implications. Let’s get started on making this transition smoothly.
- Halting Contributions: We’ll help you cease all new contributions to the plan to comply with the formal resolution of termination.
- Distributing Assets: We make sure to distribute all plan assets to the beneficiaries as soon as administratively feasible, which is typically expected to be carried out within one year of the plan’s termination date.
- Ensuring Full Vesting: We’ll confirm that all contributions, including employer contributions, are fully vested at the time of distribution.
- Managing Rollovers: We’ll facilitate the rollover of distributed assets to another qualified retirement plan or an IRA in accordance with the participants’ directions.
Adherence to the plan document’s terms throughout the termination process is paramount to avoid breaching fiduciary duties and we’ll be with you every step of the way. We’ll make sure that accurate and timely filing of a final Form 5500 is done to satisfy reporting requirements. If the plan held employer securities, understanding and managing the diversification rights of participants becomes critical and we’ll make sure.
Under Audit By the IRS?
If a plan is under audit by the IRS or subject to legal action, HFG helps employers resolve these issues before the final distribution of assets is made. We’ll make sure that thorough records of all termination activities are maintained, as they may need to be produced in the event of any governmental review or participant inquiries.
Partner with HFG for a Streamlined 401(k) Plan Termination
Embarking on a 401(k) plan termination can be challenging, but with HFG, you’re not alone. Our expertise and personalized approach ensure that your company’s transition is handled with the utmost care and professionalism.