HELP! Transfer of Assets
Posted 10 November 1998 - 06:57 PM
Thanks for your help.
Posted 11 November 1998 - 09:56 PM
1) a resolution authorizing the transfer
2) language in both plans providing for transfers when an employee changes status (union/nonunion)
3) 5310-A (I don't see you as falling into any of the exceptions for filing the form.)
You need 1 and 3 for each transfer.
Why not leave the participants' balances in the union plans? In the future, as participants switch bewteen plans,you let them maintain balances in both plans - probably easier than always doing these transfers.
Posted 12 November 1998 - 09:52 AM
I agree that the plan documents for both plans will need to be amended but I don't see why a corporate resolution can't approve the amendments and any transfers that thereafter results from the amendments.
Some reasons for wanting to effect the transfer: (1) the nonunion plan was better investment options or more generous loan options, (2) loan repayments come through on separate payrolls so you'd like any loans being repaid by current nonunion employees to be paid into the nonunion plan, (3) the recordkeeper has one master file for both plans and separates records only when preparing Form 5500 and discrimination testing, in which case the recordkeeper often can't maintain two accounts for the same employee.
Posted 12 November 1998 - 02:05 AM