As I mentioned, my questions are hypothetical, but the following are scenarios that I can see occurring: ABC Company sponsors a multiple employer plan and uses a prototype plan document. The adoption agreement was restated effective 1/1/2016 and executed 4/20/2016. The plan has over 100 participating employers.
Participating employer X was an adopting employer of another MEP and had been participating in that plan since 1/1/2012. They then transferred their plan to the ABC MEP in 2016. New participation agreement is effective 1/1/2016 but the participation agreement was never signed and there is no board resolution. Assets from their prior plan transferred in March 2016 and participants have been actively making contributions since February 2016.
Participating employer Y had never been a part of a 401(k) plan and decided to become an adopting employer of the ABC MEP. Their participating agreement has an effective date of 9/1/2017 but it was never signed and there is no board resolution. Contributions have been actively made since 9/2017.
Participating employer Z was an adopting employer of another MEP and transferred their plan to the ABC MEP in March 2018. Assets from their prior plan transferred in April 2018, but contributions have been made into the ABC MEP since March. Participation agreement has not been signed and there is no board resolution.
Under each of these circumstances, what can the participating employers do? I tried to give 3 different examples to field any questions I may have from an ABC Company at some point.
