Posted on Friday, 10th September 2010 by The Keane Organization

Welcome to Keane's Plan Termination and Retirement Services Blog. We hope that you enjoy the free content. If you have a specific question or would like personal assistance, don't hesitate to contact us. -- Thanks for visiting!

Because of the layoffs sparked by the current recession, many managers have been compelled to look into what their companies should know about 401k partial termination.

By law, if there is a partial termination of a qualified plan, the plan sponsor must give ALL effected participants the benefits that they have accrued under the plan.

Failure to do so could disqualify the plan and result in significant costs to the employer –

Not to mention possible lawsuits by plan participants who are forced to prematurely recognize income due to the plan’s disqualification. Read More »

Tags: 401k Termination, Defined Contribution Plans, Plan Termination, Retirement Plan Management, Retirement Services
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Posted on Wednesday, 8th September 2010 by The Keane Organization

This article comprehensively addresses the pension plan termination process in an effort to inform you about the procedure.  It will specifically detail the definition of a pension plan, the types of pension plans, the types of plan terminations, and how to facilitate the closing of a pension plan upon termination. Read More »

Tags: Defined Contribution Plans, IRS forms, Plan Termination, Retirement Plan Management, Retirement Services
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Posted on Thursday, 2nd September 2010 by The Keane Organization

401k plan termination may sound like a simple process. After all, each participant receives their own account balance and there is no employer unfunded liability.

For a large employer with a full-size Human Resources department, the 401(k) termination process will be cumbersome but manageable. However, for small employers with limited staff and resources, terminating a qualified plan of any type will be challenging and full of unique and special issues.

There is a complex series of steps that must be meticulously followed. Any errors can result in serious negative tax consequences for both employers and personnel. Read More »

Tags: 401k plan termination, 401k Termination, Plan Termination, Retirement Services
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Posted on Wednesday, 25th August 2010 by The Keane Organization

This post is meant for retirement plan administrators looking for information on qualified 401k plan termination. Specifically, it will detail the notice of plan termination that must be delivered to participants and provide a blueprint for effective plan closure.
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Tags: 401k plan termination, Defined Contribution Plan, Missing Participants, Participant Outreach, Retirement Services
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Posted on Thursday, 19th August 2010 by The Keane Organization

Employee turnover is commonplace in all organizations and when the time comes for an employee to leave a company for personal reasons or retirement, they often receive a card or a cake and then continue on their way. However, what some companies do not understand is that former employees and missing participants can have a large – and potentially negative – impact on their retirement plan and ultimately, their bottom line.

Recently, Mark Sweatman, President of Keane Retirement Services, authored an article for SHRM Online about how missing participants can cause real problems in an organization. Read More »

Tags: 401k Termination, Missing Employees, Missing Participants, Plan Termination
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Posted on Monday, 16th August 2010 by The Keane Organization

Like most businesses, market conditions and economic unrest have affected the retirement plan sponsors and service providers we work with every day.

Mark Sweatman, President of Keane Retirement Services, was recently asked by PLANSPONSOR magazine how we have been advising our clients during these tough economic times. The article, published June 11, addresses how market turbulence has increased awareness and sensitivity to fiduciary risk. Read More »

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Posted on Monday, 21st June 2010 by The Keane Organization

Do you need to learn how to terminate a defined contribution plan?

If so, read on to learn the basics of defined contribution plans and the steps involved in terminating one.

If you still have questions at the end of this article, feel free to contact Keane Retirement Services by clicking here to fill out the online contact form.

OR –

If you would like to speak to an expert over the phone, call us at 800-848-8896.

What Exactly Is A Defined Contribution Plan?

Here’s a brief definition — if you already know this, feel free to skip to the next section on how to close a defined contribution plan.

A defined contribution plan is one in which the benefits of an employee during retirement ultimately depend on the amount of contributions to and asset appreciation within an individually-owned account. This is in contrast to defined benefit plans in which employees have no individual accounts, but rather are promised a benefit from the company during their retirement. The value of the benefit is typically based on the employee’s length of service and earnings history. Read More »

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Posted on Tuesday, 15th June 2010 by The Keane Organization

Actually, there is no such thing as a “401k termination letter”, though it is a commonly [mis]used phrase.

What people really mean when they say it is a 401k plan “determination” letter. You can see how one may confuse the two.

But, it just so happens that this IRS letter IS an important necessity when terminating 401k plans.

What You Need To Know About “401k Termination Letters”

A 401k determination letter is Form 5310 that is filed with the IRS.

An affirmative response from the IRS indicates that it has reviewed the plan document and found that all of its provisions comply with the requirements for a qualified 401k plan.

An employer who sponsors a 401k plan is strongly advised to get an IRS determination letter when the plan is first established, whenever it is amended and before the plan is terminated.

However it is not a requirement. In fact, we see many plans that terminate without first filing this form.

A favorable IRS 401k determination letter is important to the employer sponsoring the 401k plan when they want the peace of mind that they have followed all the rules.

Why Determination Letters Are Important

Qualified 401k plans give substantial tax benefits to both parties. Read More »

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Posted on Monday, 26th October 2009 by The Keane Organization

To help plan sponsors address the challenges of missing participants, Keane Retirement Services (Keane) has entered into a strategic partnership with automatic rollover experts Millennium Trust Company (Millennium). The partnership leverages the strengths of each company to provide customers with an automated, one-stop solution for plan terminations and missing participant resolution. Read More »

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Posted on Friday, 7th August 2009 by The Keane Organization

Thomas J. Mackell Jr., Chairman of the Board of the Federal Reserve Bank of Richmond, gave a speech in New York at the end of January 2006 in which he announced that he anticipates that defined-benefit plans (i.e. pensions plans) will fade away over the next five years. Today, true to form on his prediction and with the popularity of 401(k) (defined contribution plans), defined-benefit plans are all but disappearing. In turn, this means more companies are opting to reduce costs by not funding pension plans. According to an article in Money Management Executive.com magazine, more than half of the Fortune 100 companies have shifted toward defined contribution only plans.

With people changing and losing jobs more than ever, it means that companies are faced with the challenge and fiduciary responsibility of maintaining 401(k) accounts and information about former employees. Read More »

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