Terminating a 401(k) plan can be a complicated process. Guideline will guide your plan every step of the way to help ensure that a plan termination is conducted in compliance with IRS regulations and completed successfully. If you need to determine if your plan can be terminated, please visit this article here.
The termination process can take up to 90 days to complete because of the time required to:
- Notify participants of the plan’s termination
- Obtain and process participant distribution instructions
- Complete required plan compliance testing
- Administer a final plan review
- Close the 401(k) trust
- Submit the final Form 5500 filing
Throughout this process, your company is responsible for paying monthly service fees until all participant accounts are fully distributed, also known as the “service end date.”
The process begins upon the completion of our plan termination process. Note that Guideline will not begin the termination process unless all the required documents are complete and approved. The plan will remain active until Guideline notifies you that the process is underway. If you’d like more information about terminating your 401(k) plan, please contact the Account Management team at Guideline. We are here to help!