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Authority to Terminate Plan |
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Authority to Terminate Plan The circumstances in which an employer can eliminate its pension plan without incurring adverse tax conditions. A company has authority to terminate plan if it is bankrupt, insolvent, or otherwise unable to continue making contributions. If it cancels a plan for any other reason, all previous contributions become taxable. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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