In order for an employer to terminate a 403(b) plan, what steps do the regulations require the employer to complete?
1. The plan must contain plan termination provisions (after 2008). 2. The employer (including related employers) cannot make contributions to any other 403(b) plan for the period beginning on the date of plan termination and ending 12 months after distribution of all assets from the terminated plan. However, if, for the period 12 months before plan termination and ending 12 months after distribution of all plan assets from the terminated plan, fewer than 2% of the employees who were eligible under the terminated plan were eligible under an alternative 403(b) plan, the employer may disregard the alternative plan. 3. The employer may not treat contributions which were not vested (considered as part of a 403(c) contract) at plan termination as contributions to a 403(b) plan. However, the employer may choose to vest the contributions prior to termination. 4. The plan must distribute all accumulated benefits under the plan to all participants and beneficiaries as soon as administratively pr
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