Co. X and Co. Y each maintain a 401(k) plan with exactly the same provisions -- eligibility/vesting/dist. options, etc. Co. X is to be merged into Co. Y as of 1/1/2007. There are 40+ participants in Co. Y's 401k and 6 participants in Co. X's 401k. Was considering at a minimum to have a short amendment to be signed off by both Co. X and Co. Y as well as trustees of each 401k reciting the merger of the two Co.'s and authorizing the merger of the Co. X 401k into the Co. Y 401k and the transfer of Co. X 401k assets into Co. Y 401k. Any additional issues? I have reviewed the protoype adoption agreements and they are mirror images of each other.

Do the plans have the same investment options? Will you have to map funds and, if so, will there be a blackout period for which notice will be required? Any employer stock issues? You may also want to ask questions re operational issues so as not to taint Plan Y with any of Plan X's problems...What about provisions for predecessor service crediting, compensation definitions, definitions of disability (i.e., employer discretion versus LTD/SSA determinations)?

Is this a control group? Or have you just created a multiple employer plan? If control group, then you add X as participating employer by amending Y plan. X does resolution to merge into Y.

If you have created a multiple er plan, you may have to create that plan first. Does the prototype allow unrelated employers?