Owner only 401(k)
Business sponsored a 401(k) with a number non-highly compensation participants
Due to a number of reasons business laid off all employees except for husband and wife
The business owner (unsure how) transitioned the plan to an “owner only” 401k plan. Reason He and spouse both didn’t want to default on their loans
Is this possible? I wouldn’t think so.
Thank you
Permalink Submitted by John Peterson on Wed, 2015-04-15 22:47
Need clarification of what you mean by “transitioned the plan to an “owner only” 401k plan”.If a new plan document (Adoption Agreement) was executed who is shown as the employer/plan sponsor?If the plan assets were moved how are the investment accounts titled now vs. prior?Were all other employees paid out on a fully vested basis?