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Question

All of the following are acceptable reasons for an employer to terminate a qualified retirement plan except:

The employer is no longer in a financial position to make further plan contributions.

The employer no longer wants to maintain the plan because it must cover other employees other than just himself.

The plan benefits are not meaningful amounts, and participants are limited in their ability to make deductible IRA contributions.

To lower plan costs and ease administrative complexity, the employer wants to switch plan designs.