Ep. 29 - What Happens to Your Retirement Plan When You Sell Your Business?

Selling your business is one of the biggest financial events of your life. Don't let your retirement plan be an afterthought.

Disclaimer: The information in this podcast is general in nature and not intended as legal or financial advice for any person. The right decision for any person depends upon his or her circumstances. We suggest that you consult with your financial advisor, who is familiar with your circumstances, before making any decisions.

Most business owners spend months — sometimes years — planning their exit. But one question often gets overlooked until it's almost too late: what happens to the retirement plan?

In this episode of The Legacy Lab, Ashley and Megan break down exactly how a business sale affects your company's retirement plan, from the fundamental difference between a stock sale and an asset sale, to the rollover rules, vesting details, and tax implications that every business owner needs to understand before they sign anything.

This is the conversation to have before you're in the middle of a deal — not after.

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Key Takeaways

1. The critical difference between a stock sale and an asset sale — and why it determines what happens to your retirement plan
2. What happens to a 401(k) plan when a buyer takes over: merger, freeze, or termination
3. The partial plan termination rule — and why it matters if more than 20% of your employees leave as part of a sale
4. Your personal vesting picture: what's always yours, and what to finalize before closing
5. Rollover rules and the deadlines you cannot afford to miss
6. The tax risk most business owners don't see coming — and how to avoid a major unexpected tax bill
7. Why both the buyer and the seller need to have an explicit conversation about the retirement plan before the deal closes
8. What your employees deserve to know — and why clear communication is part of your responsibility as the plan sponsor

Other Resources

• Meet with our Retirement Team

• Blog: A Comprehensive Guide to Understanding Solo 401(k)s >> Read Here

   

• Ep. 22: The 2025 Retirement Plan Rescue: How SECURE 2.0 Gives Business Owners a Second Chance >> Listen Here

• Follow us on social networks at @rmcgp on LinkedIn, Facebook and Instagram