Authority To Terminate Plan
Definition of "Authority to terminate plan"
Means of ending a pension plan only for reasons of business necessity, following IRS regulations. If the IRS determines that the plan was terminated for other reasons, employee and employer contributions become taxable. Reasons acceptable to the IRS include bankruptcy, insolvency, and the inability of a business to continue to make its contributions because of adverse financial conditions.
Popular Insurance Terms
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Cancellation of a policy by an insurance company. ...
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