To Terminate (the Target’s 401(k) Plan) or Not to Terminate? That is the Question.

Handling 401(k) plans in mergers and acquisitions can be complicated. In a stock purchase acquisition, the question is—should the buyer require the target to terminate its 401(k) plan before closing or keep the plan in place, at least for a short time following closing, then merge it into the buyer’s 401(k) plan.

Read now »

Related Content

• Retirement Plan Issues in Corporate Transactions
  Learn more about how employee benefit plans may be impacted differently depending on how the corporate transaction is structured. This practice note discusses key considerations related to addressing U.S. employee retirement plans in business transactions, with a focus on qualified defined contribution and defined benefit plans.
• Corporate Transactions EBEC Resource Kit
  Reference this resource kit for additional Practical Guidance resources regarding mergers and acquisitions and their effect on employee benefits and executive compensation. Regardless of size, corporate transactions can implicate various employee benefits and executive compensation issues. These issues, in turn, can significantly impact the transaction's structure and purchase price.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.    

• Employee Benefits & Executive Compensation Key Legal Developments Tracker
  Stay informed on new developments.
  • ERISA. DOL provides guidance to multiemployer pension plans receiving Special Financial Assistance regarding information to be included in their Annual Funding Notice. Field Assistance Bulletin 2023-01.
  • Health and Welfare Plans. IRS issues 2024 inflation adjusted amounts for Health Savings Accounts as determined under I.R.C. § 223 and the maximum amount that may be made to health reimbursement arrangements (HRAs). Rev. Proc. 2023-23.
• Generative Artificial Intelligence (AI) Resource Kit is a collection of current guidance on generative AI, ChatGPT, and similar tools.
• Bank Failure Resource Kit assembles Practical Guidance resources covering topics related to the recent bank failures.
• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts. 
• The Practical Guidance Journal Second Edition 2023 includes legal developments on generative AI, cautions related to the use of AI in hiring and assessing, and the new challenges long COVID presents for employers.
• Check out the new Practical Guidance Author Center! Learn about the 1750+ leading attorney authors contributing to our 23 practice areas and find out how you can Become a Practical Guidance Author. 
• Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content. 
• Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on cutting edge issues in the law: NFTs, Cannabis, COVID-19, and more.

• New and Updated Practical Guidance Content
  • Claims Appeals Procedures Must Be in Formal Documents
  • IRS Snapshot on Plan Loan Offsets
  • Resources for Tracking State and Local Retirement Initiatives
  • Pay Versus Performance Disclosure Statement
  • The End of the COVID-19 Public Health Emergency: New Deadlines for Group Health Plans
  • New RxDC Reporting Instructions: Good/Bad News Ahea of June 1 Deadline

PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+