Tax ID Number

[Kelly]

Hello,

Our plan has a DB, 401(a) and multiple 457(b) plans and was originally one plan sponsor.  When the plans were first created they were all under the plan Sponsor's tax id.  Over time the DB plan moved to it's own tax id.  The 401(a) and 457(b) are still under the original plan sponsors tax ID.  The plan is now a multiple employer plan.  My first thought is that the 401(a) and 457(b) should be under the same tax id number as the DB plan.  I have also heard arguments that that should all have individual tax's ID's. 

Thoughts?  Any supporting links you could send me to?  TIA.

Kelly

[Bill Presson]

The sponsor's ID I'm assuming hasn't changed. For plans being reported on a 5500, the sponsor's ID and the plan number (eg 001, 002, etc) are the numbers shown on the 5500. For a multiple employer plan, the lead sponsors TIN is typically the one used for the 5500.

A plan's trust often, but not always, obtains TIN to show the ownership of the assets.

Very rarely does a plan actually get a TIN. In fact, I've been doing retirement plan consulting for more than 30 years and never had a plan need one.

[Kelly]

Correct.  The Sponsor's ID has not changed.  However, in 2003 an entity spun off of the main plan sponsor but still remained in the plan.  We are now a multiple employer plan.  Not sure if it is correct to continue to used the first sponsor ID now that there is a second entity.

[Bill Presson]

If the original plan sponsor is still the plan sponsor and the spin off is a participating employer, then the 5500 would still reflect the original plan sponsor's ID. The participating employer would be listed on the 5500 MEP attachment.

[Kelly]

Isn't form 5500 for ERISA based plans?

[Bill Presson]

5 hours ago, Kelly said:

Isn't form 5500 for ERISA based plans?

Yes ma'am. For what other reason (perhaps plan document?) are you concerned about using the EIN for?

[Kelly]

Our concern first came up when the plan sponsor went into emergency manager status and bankruptcy was a possibility.  I wanted to make sure that should bankruptcy happen there would be no question as to where the assets belonged. 

[Bill Presson]

3 hours ago, Kelly said:

Our concern first came up when the plan sponsor went into emergency manager status and bankruptcy was a possibility.  I wanted to make sure that should bankruptcy happen there would be no question as to where the assets belonged. 

The assets of the plan are owned by the trust and the trust typically has it's own TIN unless the assets are held by a formal recordkeeper. That's the TIN you need to be locating.

[Kelly]

Thanks!