Company A wants to buy Company B and everyone wants to terminate Company B’s 401(k) Plan. In an ideal world, this should be done before the closing date of the deal. If A has a plan and wants to terminate B’s plan, that successor plan rule could be a problem since if you terminate B’s plan and distribute assets, barring a very minor exception, A can’t have a plan for a year.
That’s why with any stock purchase with existing 401(k) plans, an ERISA attorney needs to be contacted.
