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).
Final Plan Administration
Termination of Third-Party Administration Services
Termination of Recordkeeping Services
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
Company Resolution to Terminate Plan
|Qualified Employer Securities Redemption**||$250 per redemption|
Participant Notice of Plan Termination
IRS Required Amendment(s)
$150-$350 per amendment
IRS Required Restatement(s)
$600-$1200 per restatement
Custodial Account Closure**
$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
Transfer/Distribution of funds (includes IRS Form 1099)
Missed/Late IRS Form 5500
$385 (min.) per outstanding
Plan Correction/Submission to IRS or DOL
Reasonable Cause Letter
$350 per letter
IRS Form 8717 requesting a waiver of the Determination Letter fee
IRS Form 5310 requesting a Determination Letter
*Does not include IRS Determination Letter fee or other government assessed fees, penalties or taxes.
**Only for QES Plan Type.
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Article ID: 131, Created: 11/9/2021 at 1:11 PM, Modified: 2/15/2023 at 3:47 PM