Company A acquires the stock of Company B in December. Under the terms of the acquisition agreement, Company A is required to establish a pension plan for employees of Company B that mirrors the plan sponsored by Company B's former parent, to be effective as of the closing date. Is there a requirement that the new plan document must be executed by the end of the calendar year of closing, or, since it will take some time to draft, review and finalize the plan, is it OK if the plan is executed early the following year, effective retroactively to the year of closing?

What date is the new plan effective?

December 1, 2005--the date of closing.

A plan is required to be adopted by the end of the employer's tax year if the employer claim's a tax deduction for contributions for that year. Plan could be established in 2006 back to first day of employer 2006 tax year. May be able to include benefit accrual for Dec 2005 as a prior benefit accrual when plan is adopted in 2006 if DB plan is adopted. When does employer tax year begin?