Plan Terminations will cause leakage

Ary Rosenbaum
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Ary Rosenbaum - The Rosenbaum Law Firm P.C.

If you look at the stock market, you wouldn’t know unemployment is 10% and that 180,000 Americans died.

Small and medium-sized businesses have born the brunt of the closings mandate by state governments around the country, while the Wal Marts, Home Depots, and Targets have remained open.

The problem with business closings is that we are starting to see the temporary closings become permanent for many businesses. The problem with the 401(k) plan terminations of these shuttered businesses is that it will incite distributions to terminated participants who need the money now and will not roll over to an IRA. The problem is that by cashing or retirement benefits now, it will only exacerbate the retirement crisis in this country.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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