We have a client that has a Target Benefit Plan. We thought they had terminated our services so we never restated their plan document. Turns out, they had created a Profit Sharing 401(k) plan with a new administration firm and had a new document prepared that complies with GUST and EGTRRA. They had issued notice to the participants informing them the Target Benefit contributions were ceasing 6 months into the year. They want us to finish up the final year contribution calculation and close out the Target Benefit Plan which will then merge into the Profit Sharing Plan. Does the new document for the Profit Sharing plan cover the Target Benefit Plan?

The target benefit plan document should be updated prior to closing out the plan.

You might also want to refer to this thread.

The target plan will have to be amended for gust/EGTRRA /MRD provisions before it is merged into the PS plan. However the time for amending the plan for GUST/MRD may have expired. Dont recommend merging the Target plan with PS plan if the GUST amendment deadline has expired.