{"id":116,"date":"2008-08-07T09:51:34","date_gmt":"2008-08-07T13:51:34","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=116"},"modified":"2008-08-07T09:51:34","modified_gmt":"2008-08-07T13:51:34","slug":"retirement-plan-transfer-disallowed-under-section-401a","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2008\/08\/retirement-plan-transfer-disallowed-under-section-401a\/","title":{"rendered":"Retirement Plan Transfer Disallowed Under Section 401(a)"},"content":{"rendered":"

In Rev. Rul. 2008-45<\/a>, the IRS ruled that the transfer of the sponsorship of a retirement plan from an employer to an unrelated entity when not connected \u201cwith a transfer of business assets, operation, or employees\u201d is a violation of the exclusive benefit rule of \u00a7401(a). The plan would no longer be maintained by an employer for its employees since the transfer was to an entity that did not employ the plan participants. The IRS also announced that it was proposing a framework for legislation that would allow transfers of so-called frozen plans, \u201cprovided certain conditions are met.\u201d The requirements proposed by the IRS are:<\/span><\/p>\n