I am the participant (age 62) in a one-participant money purchase pension plan that was started about 20 years ago and I would like to discontinue contributions to the MPPP. The assets of this plan include various mutual funds as well as an annuity contract with a guaranteed lifetime payout even if the underlying securities decline in value. I also have a SEP that was created earlier in my career which has been inactive since the creation of the MPPP. The SEP assets consists of various mutual funds. I believe my plan documents are up to date and all 5500's for the MPPP have been timely filed. I would like to combine the assets of the two plans and from my online research of the issue I've learned "just enough to be dangerous".
Specific questions are as follows:
1.) Should I "terminate" the MPPP or "freeze" it? How long can a MPPP be frozen?
2.) If I terminate the MPPP, what happens to the annuity contract and the lifetime payout it provides?
3.) Can the mutual funds in the SEP and those in the MPPP be combined into a single account?
Of course, I don't want to create a taxable event from any action I take.
Any advice will be much appreciated. Thanks very much.
