Contact Leading Retirement Solutions prior to terminating your plan to ensure that your plan is up-to-date.
In general, retirement plans are established with the objective of continuing indefinitely. However, business owners may opt to terminate their plan when it no longer satisfies their business needs, or if they wish to establish a different type of plan. Regardless of the reason, plan sponsors must complete several steps in order to effectively terminate their plan. If you wish to start the termination and dissolution process for your company sponsored retirement plan, below you will find important information regarding the process and what we will need from you in order to move forward.
If your plan holds nontraditional assets, including but not limited to: qualified employer securities (QES), private stock, qualified employer real estate, real estate, promissory notes, agricultural/maritime rights, livestock, precious metals, and other hard money lending, it is important that you properly liquidate and/or transfer such assets out of the retirement plan. We cannot finalize the dissolution of your retirement plan or file the “final” IRS Form 5500 until all assets are properly removed from the retirement plan.
Regulations generally require that you obtain a valuation of the nontraditional asset(s) in accordance with current regulatory requirements related to valuing the applicable asset type, as a necessary step in closing down a retirement plan. LRS will also require a final valuation of such asset(s) for purposes of completing the final IRS Form 5500. We encourage you to secure the necessary expertise and service providers to ensure that such asset(s) are properly purchased, transferred, and/or titled in the name of the retirement plan. Reach out if you feel you need assistance with this process.
For more frquently asked questions realted to the plan termination process, review our Plan Termination FAQ.
Yes! Given how complex the termination process is we have developed multiple blog articles with Answers to Frequently Asked Plan Termination Questions along with a 7-Step Guide to the Plan Termination Process.
If you still have questions feel free to reach out to our team of experts.
If you have questions about how the current state of financial markets and COVID-19 will impact your company sponsored retirement plan, we have answers. For updates from LRS on changing government policies that result in relief for company sponsored retirement plans, helpful tips, and resources for navigating your plan during these uncertain times: