A one participant 5500EZ filing (non Title IV) plan was converted from a DB to a Profit sharing plan eff 1/1/05.

Title IV plans are considered terminated when a plan is converted from DB to profit sharing, as long as PBGC termination procedures are carried out.

How would one consider and administer the example above?

It seems the DB plan could be considered terminated at 12/31/2004 and the accrued benefits rolled into the PS plan. A problem would occur if assets exceeded 415 limits (or at least excess asset issues). And a final 5500EZ subsequently filed.

Any thoughts?

I have a similar question. I have a small plan, actually three small plans - a db plan, a 401(k) and a profit sharing. Client wants to merge all three together.

I have read 1.414(l)-1(l), and can't find any guidance on where to go from there. Can anyone point me toward some Rev. Proc. or Rev. Ruls., court cases, etc.???

I think, if I read 1.414(l)-1(l) correctly, that I need to convert the db plan into a dc plan, and then I can merge it into the resulting profit sharing plan. At the end of the day, a restated profit sharing plan with a CODA will be the only plan.

Each situation necessitates the termination of the DB plan, not the "conversion" or "merger". Neither of the latter are permissable because they would necessitate the maintaince of DB features which would make it a DB plan.

That is what I thought until I read 1.414(l)-1(l) last night.

1.414(l)-1(l) is titled "Merger of defined benefit and defined contribution plans."

It says" In the case of a merger of a defined benefit plan with a defined contribution plan, one of th eplans before the merger should be converted into the other type of plan (i.e. the defined benefit converted into a defined contribution or the defined contribution converted into a defined benefit) and either paragraph (d) or paragraphs (e) through (j) of this section, whichever is appropriate, should be applied." (Page 1,025 of RIA's 2005 IRS Final and Temporary Regulations, bottom left-hand column.)

Sections (e) through (j) are "Merger of defined benefit plans", et. al., which is not what I want because in the end I want to end up with a profit sharing plan, not a db plan.

Section (d) is "Merger of defined contribution plans", which tells me 3 conditions I need to meet when merging the dc plans.

This is why I think I want to convert, not terminate, but I can't find anything interpreting this section.