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In February I changed jobs. My former job provided a 401(k), and my new job also provides a 401(k). I am filling out the forms to do a direct rollover from one to the other, for the full amount. The form that is provided by my former employer's institution asks this question:

Is payment of this benefit subject to Plan Termination? [ ] No [ ] Yes

I am a native English speaker but I still can't understand quite what they're asking. Any clue what that question is really getting at? And which box might be the most logical to check?

My best guess is that it's asking if I want the old plan to be terminated after the distribution (which would be a 'Yes'), but I'm just not sure that's what it's asking.

Chris W. Rea
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soapergem
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    You might want to consider not rolling over your 401(k) into your new employer's 401(k) plan but to roll it over into an IRA instead. See the answers to this question for some ideas. – Dilip Sarwate Sep 17 '18 at 04:24

1 Answers1

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The proper answer is "no". The form is asking if the reason for the payment is that the (former) employer terminated the entire benefit plan (i.e., for everyone). This is not the case, you are simply changing jobs and making a rollover.

("Plan Termination" has a very specific meaning at the IRS.)

Rocky
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