Greg Walker

With respect to successor plan rules, under Code Section 401(k)(10), I believe a distribution cannot be made in connection with a 401(k) termination if the employer maintains another DC plan. With that in mind, can a multiple employer plan be the successor plan? Does that qualify as a plan 'maintained' by the employer?

Yes to your question that there is a single employer plan and sponsor wants to instead participate in a MEP. Your answers are correspond to what I'd suspected. Thanks for confirming/clarifying. Again, much appreciated.

Thank you for the information here. It's terrific. Mind if I ask a few follow-up questions? Just to clarify, the adoption of the plan by the employer, wouldn't require a plan termination? If not, are there requirements to keep certain provisions (grandfathering) from the previous plan? I'm wondering about spousal consent among other things. If plan termination is required, would the plan adopted by the employer fall under 'successor-plan' rules?

Thank you for the information you provided. This is extremely helpful. I really appreciate it.

I'm doing some research for one of my clients and have a couple of regulatory-related questions regarding multiple employer plans, and plan terminations and conversions. I've pored through regulations, but I'm getting dizzy and could use some help. Here goes: Can you 'convert' a plan from a single employer plan to a different structure like a MEP (and eventually, when/if made legal, a PEP) and move all of the assets over without making it a distributable event? When a plan terminates, it creates a distributable event, I believe. Is there a way to convert these assets to a MEP - say like a 'mass rollover'? Finally, are there rules/regulations that prohibit starting a new plan within a short time window of terminating a current plan? If so, are there rules requiring 'grandfathering' of any specific provisions from the terminating plan? Thanks for any help you might be able to provide.