Takeover Plan.

Document from Insurance company says Multiple Employer Plan.
5500 Filed as a Multiple Employer Plan, but had the name of the ER that we are working with listed as the ER

What do I have to do to Make it a Single ER Plan?
What about the weird Plan number 333 - does it have to change to 001?

Looks like the Adoption Agreement was set for this particiular Employer.

I don't know much else except it was done by an Insurance Company.

What do I need to look for to change this over to an regular 401(k)

Appreciate any insight and where to look for answers.

Thanks

Pat

In order....

Normally documents have a section that addresses "Multiple Employer Provisions". Do you mean the Plan has "multiple employer plan" in the name? If so, just change the name. If something else, I need more details.

A Multiple Employer Plan (MEP) will have a "primary plan sponsor". The other firms are "adopting employers". It sounds like your client is the "primary". It is analogous to sponsoring a prototype. The analogy does breakdown qucikly, but it might help you visualize this concept.

Have "adopters" terminate their participation. Keep in mind that the plan is simply a program that is sponsored by the primary which is adopted for use by the adopters. Ultimately, you could have the primary terminate sponsorship, but that requires steps that I am not sure you need at this point.

333? Sounds like whoever had this before you was trying to apply "logic" like plan number 501 for 125. Anyway, on the next 5500 you do, take action to correct plan number. See 5500 instructions for details. It's not hard.

Your conclusions about the Adoption Agreement confirms that this firm is the primary.

No comment comes to mind.

It already is a "regular 401(k) plan". You just need to clean a few things up. Almost all can be done with the EGTRRA Restatement. Of course, you may have some historical operational defects, but without details, I can't speak toward that. Assuming that there is not serious "botch up" with the past administration, you should be able to fix this without too much problem. Of course, Murphy's Law says......

Hope that helps "Pat".

1. Find out if any other employers did, in fact, adopt the plan, and see if they still want to be part of it.
2. Make sure testing was done correctly.

Thanks - I don't think that this employer is the PRimary Sponsor - just one of the participating ER's, but I will find out for sure and then I might have some more questions.

Pat

The ER we are working with is the Primary Sponsor. There was another unrelated company that was a prior participant, but left in 2005. As far as I can get with the information , there is not currently another ER that participates.

1. Since it's on a VS Document that says Muliple employer Plan, I take it we can just restate under our Single ER prototype? Any problems with doing so? Am I restating or do I have to first terminate the Mutiple Employer Plan and transfer the assets??
2. If I can just restate - do I just then change the EIN number to 001 or 002??

What other questions should I be asking relating to changing the Multiple Employer Plan to a Single Employer Plan?

Thanks

Pat