---
kind: "section"
citation: "29 C.F.R. § 4044.4"
title: "29"
number: "4044.4"
heading: "Violations."
url: "https://uscodex.org/cfr/29/4044.4"
---

# §4044.4. Violations.

- (a) **General.** A plan administrator violates ERISA if plan assets are allocated or distributed upon plan termination in a manner other than that prescribed in [section 4044](/cfr/29/4044.md) of ERISA and this subpart, except as may be required to prevent disqualification of the plan under the Code and regulations thereunder.
- (b) **Distributions in anticipation of termination.** A distribution, transfer, or allocation of assets to a participant or to an insurance company for the benefit of a participant, made in anticipation of plan termination, is considered to be an allocation of plan assets upon termination, and is covered by [paragraph (a)](#a) of this section. In determining whether a distribution, transfer, or allocation of assets has been made in anticipation of plan termination PBGC will consider all of the facts and circumstances including—
  - (1) Any change in funding or operation procedures;
  - (2) Past practice with regard to employee requests for forms of distribution;
  - (3) Whether the distribution is consistent with plan provisions; and
  - (4) Whether an annuity contract that provides for a cutback based on the guarantee limits in [subpart B of part 4022](/cfr/29/part4022-subpartB.md) of this chapter could have been purchased from an insurance company.

## Notes

### Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

### Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.