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What are the notification requirements to participants, etc., when a plan terminates?

April 26, 2017NOTIFICATION participants Plan requirements terminates

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What are the notification requirements to participants, etc., when a plan terminates?

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A. When terminating a Payroll Deduction IRA, a SEP or a SIMPLE-IRA plan, you must notify your employees that the plan has been discontinued. You may need to notify the financial institution that you chose to handle the plan that you will no longer be making contributions. You may also need to let the institution know that you will terminate the contract or agreement with it. You don’t need to notify the IRS of the plan’s termination.