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Showing results for tags '410(b)(6)'.
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Company A and Company B merge on July 1, 2015 under the common ownership of a management company. Company A and Company B each of a 401(k) plan. Since the merger has already taken place, it is my understanding that under the same desk rule, one of the 401(k) plans cannot be terminated and thus the plans must be merged. To date, the plans have been run separately. My question relates to the interplay between the transition period and the submitting a VCP submission prior to applying for a plan merger 1. Transition Period My understanding is that the plans must be merged by December 31, 2016 (a full plan year after the company merger). Is this correct, even if the plans have been operating independently (as they were before the merger) all along? 2. VCP Company A's plan has errors requiring correction under the VCP program. We want to complete the VCP before merging the plan to avoid tainting the Company B plan. However, if the Transition Period applies, what would happen if the DOL does not rule on the VCP submission before the end of the Transition period? Thank you!
