May a 403(b) plan sponsor treat plan termination as a distributable event before the effective date of the final regulations (January 1, 2009)?
Yes. However, if a plan sponsor wants to distribute pursuant to plan termination before January 1, 2009 (and after July 26, 2007), all contracts (and custodial accounts) must be in operational compliance with all of the new regulatory requirements other than the written plan requirement. However, an insurance company may object to making an annuity contract distribution on plan termination because the contract does not provide for the distribution, regardless of the fact that the regulations permit the distribution.
Related Questions
- If Anthem performs COBRA administration for the plan, how does the employer notify Anthem that a Qualifying Event has occurred and how much time does the employer have to notify Anthem?
- Are doctors who treat participants under the plan Business Associates? How about employees of the plan sponsor?
- Is plan termination a distributable event?
