73. Vesting - plan termination

Statement of Requirement: Code § 411(d)(3)(A)

Sample Plan Language: In the event of the termination or partial termination of the plan the account balance of each affected participant will be nonforfeitable.

(Note to reviewer: See Rev. Rul. 2007-43, 2007-28 C.B. 45, regarding partial terminations. Special rules apply in 2020 and 2021. Section 209 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act), enacted as Division EE of the Consolidated Appropriations Act, 2021, Pub. L. 116-260, provides that a plan is not treated as having a partial termination (within the meaning of § 411(d)(3)) during any plan year which includes the period beginning on March 13, 2020, and ending on March 31, 2021, if the number of active participants covered by the plan on March 31, 2021, is at least 80% of the number of active participants covered by the plan on March 13, 2020. This relief is operational and does not require enabling terms. Therefore, no sample plan language is provided in this regard.)