Have you ever said “yes” to something only to realize that with changing circumstances, you really need to back out? Sometimes this happens with employer-sponsored plans, too. Business conditions are always changing and sometimes, the best of intentions are rendered toxic to the health of a company’s finances. There are mechanisms to terminate a plan. There are also alternatives to simply deconstructing a plan. But if the plan is too far gone, the regulators might not permit these alternatives and simply shut the plan down by operation of law. Before you say “yes” to a new plan, be sure to understand how to unwind it, if conditions change.
Identify the commonly cited reasons for a plan ...