An employer plans on making a profit sharing contribution for the 2006 plan year. However, the plan will merge with a related employer's plan as of 1/1/07. Is it okay for the employer to make this profit sharing contribution after the merger of assets? It seems a little odd to be making a contribution to the merged plan on behalf of participants of a plan that no longer exists.

Sure, the benefit was accrued before merger and funded after. Don't see an issue here.