Plan Termination Services

Most retirement and/or deferred compensation plans may be terminated at the discretion of the sponsoring employer. Exceptions apply in the cases of multiemployer plans, subject to collective bargaining, and plans adopted as a result of contractual obligations. When an employer elects to terminate a plan, there is a process that, if followed, will provide protection for the employer and trustee(s) in the event of any subsequent regulatory audit. This process involves making application to the IRS for a determination that the plan, as constituted and operated, qualifies under applicable law for tax relief. Such an application is not strictly required by law but is, in the opinion of most experts, highly advisable. Spectrum will prepare the application along with accompanying documentation and will submit it to the IRS.

Additional services Spectrum provides in the event of plan terminations include:

• preparation of final trust and plan accounts covering the period from the last Plan Year End to the date of plan termination;
• production of final participants statements;
• production of final (complete or partial year) financial reports;
• preparation of all governmental reports and filings;
• preparation of participant election packages for distributions;
• preparation of distributions, in accordance with participant elections, including any applicable withholding; and
• liaison with regulatory agencies, accountants, auditors and legal counsel, as required or requested.