If you need to discontinue your plan for any reason, we’ll be there with you through every step of the process. To start, there are quite a few ways to dissolve your plan.
The blanket term for any plan looking to change their relationship with Accrue is called a service termination, and under the service termination umbrella, there are four different ways that you can dissolve your plan.
Plan termination
If you are looking to permanently close your 401(k) plan for any reason, for example you are closing down your business, you will want to request a plan termination.
As a part of the plan termination, we will assist you in distributing all funds to participants, completing any required compliance testing, and filing the final Form 5500. Please note that if you terminate your plan, the IRS will not permit you to establish a new 401(k) plan within 12 months of the final liquidation date.
Transfer/deconversion
If you are looking to end your service with Accrue and transfer your plan to a new service provider, you will want to request a plan transfer or deconversion. Your plan will still remain an active plan under the IRS, however, it will be with a new provider (no final Form 5500 required).
Internal merger
If you are looking to combine one Accrue plan with another plan also at Accrue, then you will want to request an internal merger. This will result in the assets being transferred to a receiving Accrue plan.
Example of internal merger: Accrue Plan A merges with Accrue Plan B, so Accrue Plan A ceases to exist and a Form 5500 is filed, indicating that the plan merged into another. No further Form 5500 will be filed.
External merger
If you are looking to combine an Accrue plan with another plan that is not at Accrue, then you will want to request an external merger. As a result, the plan assets will need to be transferred to a receiving/successor plan outside of Accrue.
Example of external merger: Accrue Plan A merges with New Provider Plan B, then Accrue Plan A ceases to exist and a Form 5500 is filed indicating that the plan merged into another. No further Form 5500 will be filed.