I have a multiple employer plan with a 7/1-6/30 plan year. Employer A is spinning off from the plan while Employer B is continuing. The spin off date is 6/30/06. I don't have much experience with spin-offs and was hopigng to get a little help. Must all contributions to the plan for the plan year ending 6/30/06 be allocated to each employer? If the assets are actually spun-off by say 12/31/06 and the contribution for the year ending 6/30/06 is made after 12/31/06, how is the contribution allocated to each employer or does the contribution have to be made prior to the actual asset spin-off? That's a good enough place to start. Thanks.

Is A setting up new plan to accept assets? If they are, then contributions for the year ended 6/30 would be paid to new plan.