Save time with our cheat sheets, fact sheets, checklists & books!

February 20, 2009

Eligible Party



Eligible Party means

(a) A court appointed representative with authority to terminate the plan and dispose of an orphan plan’s assets;

(b) In the case of an Orphan Plan under investigation by the Department of Labor, a person or entity who the Department of Labor determined has accepted responsibility for terminating the plan and distributing the plan’s assets; or

(c) In the case of a Qualified Plan to which Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”) has never applied, a surviving spouse who is the sole beneficiary of a plan that provided benefits to a participant who was

(i) the sole owner of the business that sponsored the plan and

(ii) the only participant in the plan.

Referring Cite

29 CFR 2578.1, Revenue Procedure2006-27

Additional Helpful Information

Orphan plans arise for a number of reasons, including

a) the death of a sole proprietor/plan sponsor,

(b) bankruptcy,

(c) the removal of plan fiduciaries by the DOL,

(d) mergers and acquisitions, and

(e) the disappearance or unwillingness of plan fiduciaries to act.  ( DOL)


Keep Learning

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Be among the first to know when

IRA Rules