Michael Anderson
Jun 27 2001, 03:18 PM
I have a company who started a profit sharing plan in 1990 and then a 401(k) Plan in 1996. They would like to merge the two into one 401(k) Plan. Is there anything else I need to do other than checking the box marked 'final return/report for the Plan' on the 5500 needed for the IRS? Does anyone know of anything else that should be done? Thanks for the help!
Mike
b2kates
Jun 27 2001, 05:51 PM
they are absolutely some "business" formalities.
there should be minutes reflecting the merger,
Notice to employess prior to the merger
determination of participant account balances in each plan
effective date of merger. will surviving plan accept assets from merging plan, double check document.
this is a short listing there is also a disclosure on form 5500.