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Posted by studiocenter on Apr 1, 2009

Layoffs Can Result in a Partial Plan Termination Requiring 100% Vesting

In this issue:

  • Background
  • Clearer Guidance from the IRS
  • The 20% Presumption
  • Calculating the Turnover Rate
  • Defining Employer-Initiated Severance
  • Facts and Circumstances
  • Applying the IRS Rules
  • Small Plans
  • Series of Layoffs
  • Other Concerns
  • Conclusion

This newsletter is intended to provide general information on matters of interest in the area of qualified retirement plans and is distributed with the understanding that the publisher and distributor are not rendering legal, tax or other professional advice. Readers should not act or rely on any information in this newsletter without first seeking the advice of an independent tax advisor such as an attorney or CPA.

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