DC plan termination: Common mistakes plan sponsors make

Plan sponsors do make DC plan termination mistakes, but this second video of a three-part series on DC plan terminations intends to help them prevent those errors.

By Tom Hawkins | Updated on September 25, 2017

Terminating a retirement plan is complicated. The importance of having a well thought out plan in place before beginning the plan termination process is imperative because making mistakes can be costly.

To better understand why plan sponsors were making mistakes in qualified plan terminations, the IRS Employee Plans Compliance Unit conducted a “Termination Project” in 2011. Over 75% of the sampled sponsors made errors!

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account? Sign In Now

NOT FOR REPRINT

Dig Deeper

Recommended Stories

Employee stock ownership plans: A Q&A with Alex Mumblat

Lily Peterson | September 04, 2024

Alex Mumblat, Managing Director at CSG Partners, believes ESOPs can appeal to prospective talent and help companies retain current staff.

DOL backs IBM retirees, urges lower court to reopen firm's ERISA pension plan lawsuit

Lynn Cavanaugh | September 03, 2024

The IBM lawsuit caught the attention of Labor Department, which claims the three-year deadline to bring a fiduciary claim doesn’t apply because workers didn’t have “actual knowledge” of the ERISA violation.

IRS issues guidance for employers that adopt key SECURE 2.0 provisions

Lynn Cavanaugh | September 04, 2024

The IRS's new fact sheet includes guidance for provisions on de minimis financial incentives, Roth SIMPLE and SEP IRAs and designated Roth matching contributions – and how these provisions impact how certain amounts are reported on their W-2s.

Resource Center

Guide

BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Exclusive discounts on BenefitsPRO.com and ALM events.