We are taking over a plan that is in the process of merging two plans, one has a 5/31/04 anniversary date, the other a 12/31/03 date, each plan is separate, but a controlled group. The plan sponsor is retaining the 5/31 plan, terminating the 12/31 plan.

For purposes of the ADP test for the period ending 5/31/04, am I correct in assuming the census information for the employees who are transferring from the 12/31/03 plan needs to overlap into the 5/31 plan? To illustrate further:

1/1/03 - 12/31/03
6/1/03 - 5/31/04(wages/401k would of already been reported from 6/1/03-12/31/03 in the 12/31/03 plan, but needs to be also reported in this plan).

I hope I explained this to understand. Thanks.

Linda Michals