Tax News

CCH (cch.taxgroup.com) reports:

When an employer ceased operations at one of its four business locations, a partial termination of its qualified defined contribution plan occurred under Code Sec. 411(d)(3), and the rights of affected employees to their account balances became fully vested and nonforfeitable as of the date of the partial termination. A partial termination was presumed to have occurred because the employee turnover rate, computed by dividing the number of participating employees who had an employer-initiated severance from employment by the sum of all participating employees and employees who became participants during the applicable period, was 20 percent or more. The facts and circumstances supported the finding of a partial termination because the severances of employment occurred as a result of the employer closing one of its business locations and not as a result of routine turnover.
Rev. Rul. 2007-43, 2007FED ¶46,527
Other References:
Code Sec. 411
CCH Reference - 2007FED ¶19,071.20
Tax Research Consultant
CCH Reference - TRC RETIRE: 18,400
CCH Reference - TRC RETIRE: 45,152