LisaS

Thank you

Thank you for your response.

The plan document has a cash out provision at age 62 for balances that are greater than $5,000. "Involuntary cash-out of a terminated Participant's Account balance when it exceeds the cash-out amount specified in F.11a ($5,000) is deferred under Section 7.03(b)until: Later of age 62 or NRA - payment made in lump sum only". Some participants have money purchase and their balances are greater than the $5,000 cash out threshold. As the money purchase is subject to J&S and spousal consent is required, does this mean that I cannot cash out those participant who have a balance greater than $5,000?

We have two MEPs that are merging/terminating. I use both words because that is my question. The MEP sponsor is merging the plans into a larger MEP at another record keeper. There are a few adopting employers who are going to merge into another MEP and one or two who are going to spin off to their own plans. The prior TPA that we inherited this MEP mess from set up each adopting employer with their own plan document and not a regular MEP document with each AE signing a Joinder Agreement. It has been my understanding that an adopting employer has limited choices when leaving a MEP: spin of and continue the plan, spin off and terminate the plan, or merge into another plan. There are the option because you cannot terminate the MEP. The MEP has a few "orphans" (i.e. inactive employer) are not transferring to the new MEP. Can the MEP be terminated just like a regular plan termination or do the "orphans" have to be spun off and terminated?

Thank you to everyone who responded.

I guess I wasn't correct in what I said about control group. I was thinking that because this is a publicly traded company with possibly thousands of stockholders that we most likely wouldn't have a control group. However, I have very little information so it is possible a control group could exist. The plan is an open multiple employer plan sponsored by a payroll company.

I have a publicly traded U.K. company with 5,000 employees in 17 countries with a U.S. subsidiary that is trying to join an open MEP. From what I have read from another post that "Legally a foreign employer can maintain a qualified plan for a U.S. employee if the plan complies with U.S. laws". I assume that because this is a publicly traded company on the London stock market that if there is another U.S. subsidiary that we don't have to worry about control group issues and can just have the U.S. subsidiary become an adopting employer of the open MEP. Because this is a MEP, we will have already met the requirement that the trust is sited in the U.S. Any advice will be appreciated.

I have two separate situations with a safe harbor plans: one that is trying to join the MEP and one that abruptly left and went to a large national payroll company. The first plan is a safe harbor plan that is being administered by a national payroll/benefits company. They were informed that the plan was leaving and stopped accepting payroll contributions in November. I am trying to contact the payroll company conversion specialists and ask if this is a fact. Because this is a safe harbor plan I thought we should merge the plans effective 1/1/2018 but the advisor wanted to start the plan 12/1/2017 because of this situation. Should we make a quick amendment to allow contributions to trustee directed (i.e. pooled) and set up a checking account in the name of the plan so we have somewhere to hold the assets? The other safe harbor left the MEP abruptly in November 2017. I have contacted the client and asked if the payroll company he went to had provided any consulting about the impact on the safe harbor but have had not response. Any advice would be appreciated.