Depending on past Retirement Plan activity and actions required to wrap up the affairs of your Retirement Plan, additional services may be necessary to terminate the Plan.
- Corporate resolution, waiver of meeting notice, & notice of meeting to approve termination of the Plan.
- Corporate Minutes approving termination of the Plan, instructions for winding up the affairs of the plan and description of business reason(s)/necessity for terminating the plan.
- Preparation of notice to plan participants of the plan’s pending termination, for distribution of the notice to employees and participants, by the Plan Sponsor.
- Transfer/rollover of remaining retirement monies from existing Retirement Plan to a new or existing retirement account.
- Coordinate and assist your new service providers with the transfer of plan/participant assets and participant and contribution records.
- Closing/final IRS Form 5500, submitted electronically via the Department of Labor’s E-Fast system.
- Company and participant reports required for the final plan year (year in which all assets are removed from the plan).
- IRS required Amendments(s) and/or Restatement(s) to bring your plan document into compliance prior to termination (as required by the IRS).
SERVICES* | COST |
Final Plan Administration | $1,000-$2,500/year |
Termination of Third-Party Administration Services | $400 |
Termination of Recordkeeping Services | $600 |
Final Accountholder Administration | $25-$100 per participant |
Early Termination-Third-Party Administration Services or Recordkeeping Services Terminated within 24 months of beginning services to the plan | $800 |
Company Resolution to Terminate Plan | $350 |
| Qualified Employer Securities Redemption** | $250 per redemption |
Participant Notice of Plan Termination | $250 |
IRS Required Amendment(s) | $150-$350 per amendment |
IRS Required Restatement(s) | $600-$1200 per restatement |
Custodial Account Closure (plan paid) | $200 |
Additional Notices | $300 per notice type |
Missing accountholder notice | $75 per notice/participant |
Assistance with locating lost participants, securing lost participant search provider, assistance with IRA Rollover Service | $75/hour |
Transfer/Distribution of funds (includes IRS Form 1099) | $85/distribution |
Missed/Late IRS Form 5500 | $385 (min.) per outstanding 5500 |
Plan Correction/Submission to IRS or DOL | Request Quote |
Reasonable Cause Letter | $350 per letter |
IRS Form 8717 requesting a waiver of the Determination Letter fee | Request Quote |
IRS Form 5310 requesting a Determination Letter | Request Quote |
*Does not include IRS Determination Letter fee or other government assessed fees, penalties or taxes.
**Only for QES Plan Type.
Leading Retirement Solutions
(206) 430-5084 phone
(800) 974-2814 (toll free)
service@leadingretirement.com
www.leadingretirement.com
Our mission: to proactively support organizations and lead them toward a secure future.
Article ID: 131, Created: 11/9/2021 at 1:11 PM, Modified: 3/25/2024 at 10:43 AM