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Client started with 401k in 1986 (001), then merged into ADP MEP (filed 5500 on ADP EIN) then now wants to spinoff to 401k. Is spinoff document 001 because they started with 001 prior to merger or 002? does predecessor service or prior year service apply in this case? Is original effective date 1986 or 2019?

Good afternoon to all, We have virtually no experience with MEPs. We have a client who owns two separate businesses and maintains a 401(k) plan for each business. One has well under 100 employees and one is dangerously close to needing an independent audit. There is a new investment advisor to the plans and she is wanting to create a MEP out of the two plans, claiming that there will be lower fees from the recordkeeper if they become a MEP. My question is this: Is this potential new MEP considered one plan with one 5500 to file, and will it now be thrust into the category where it needs an independent audit because it will have over 100 participants with the two companies combined? Your advice is greatly appreciated.

I have a client who was the sponsor of a VS 401k plan. They elected to to join a MEP available through their HR services company. The original 401k plan was amended to suspend all contributions effective 4/30/2018 and the adoption of the MEP was effective 5/1/2018. The MEP was setup to mirror the existing plan (basic 401k subject to ADP); to the employees it was essentially only a change in where their assets are being invested. All participant accounts will be merged from the old investments to the new. With regards to compliance testing, we're getting push back from the MEP administrator RE one set of compliance tests vs. two. I don't see any reason why the plans would be tested separately since it is one employer who is the sponsor of both plans. A separate filing for the original plan will be required until the assets are fully merged to the new but is there a logical reason (one that I am missing) as to why separate testing would be performed? I have looked through regs RE mergers but most of them deal with asset/stock sales which this is not.

When a single employer plan transfers to a Multiple Employer plan, is this considered a termination of the single employer plan? or simply a merger under the Multiple Employer plan? If this should be a termination of the single employer 401(k) plan, would the plan be subject to the 12 month restriction to start a new 401(k) - Participants were NOT eligible to request distributions. Thank you in advance for sharing your thoughts!

We started up an Open MEP recently and question the best way to collect fee's on it. Before it was a MEP, the fee's had been paid out of plan assets. We had a base fee and then a per participant fee. A total fee was calculated and then taken based on account balance. Not that it is split, we are now not 100% sure if there are certain fee structures that can't be used. Let's say we have the following company fee structure. For simplicity, a $25 per participant fee. 20 people in company A and 80 in company B. - Total fee is then $2,500. However, Company A has 50% of the assets and Company B has 50% of the assets. Now it's created a situation where even though Company B has created $2,000 of the fee's, it only has to pay for 1,250 of it. Does anyone have past experience with this or know if there is some sort of regulation on how we can charge the fee's then for this case? The company would not want to start paying the fee's - they like to have as much paid by the plan as possible.

Company A established a 401(k) plan in 1999. In 2008, the owners of company A purchased company B and we had a controlled group situation. Late in 2016, ownership changed and there was no longer a controlled group but the plan has become a multiple employer plan. Employee Z contributed to the plan from 1999 to 2005. In 2016, he became a 10% owner of company B. He is currently not working for company A. He has an account balance attributable to contributions made while working for company A. He is not currently making contributions. What happens to his existing account? Should it be accounted for under the assets of company A? Or, is it now counted as a company B asset? Plan B would become top heavy if the assets move to that plan.

Hi all, Hopefully someone can help, I've searched and not much has come up on the subject. We have a plan that consists of 4 groups. (A,B,C,D) Group A would do administration and training for the other 3 groups. Recently, ownership and roles have changed and it made more sense to convert the plan to an open MEP. Group A still handing the work regarding the plan and letting the other groups adopt provisions within the plan. In past years and from 1/1/2016 to 6/30/2016 it was all in 1 plan, 1 5500. Filing with Group A's data. From 7/1/2016 to 12/31/2016 (and beyond) it is going to be treated as an open MEP. 4 5500's going forward. My question relates to the 5500 filing for this conversion year. It would seem two scenarios are at play, and I'm having trouble finding guidance: Scenario 1 - A 5500 filed for 1/1/2016 to 6/30/2016 showing a transfer out of all the assets. This would be due 4/15/2017 with extension. Then 4 5500's for the 4 groups 7/1/2016 to 12/31/2016 with assets transferred in. Scenario 2 - Since Group A will exist throughout the whole process. Group A files a 5500 from 1/1/2016 - 12/31/2016 - showing a transfer out of the other 3's assets. Then the other 3 groups file their 5500's from 7/1/2016 to 12/31/2016. We are leaning towards Scenario 2 but unsure. Thank you in advance!

If the DOL no longer required employer associations to be bona fide (AKA have commonality and control over the plan), what entities would qualify as MEWA under the phrase "any other arrangement"? ------------------------------------------------------------------------------ People are correct in that the commonality requirement for pensions is not explicitly stated in ERISA. My thought, is congress may have ratified the DOL's position requiring employer associations to possess commonality and control by adopting the 1983 amendment defining a MEWA: Essentially, unless some entities would still be considered to be a non-EWBP MEWA without the commonality and control requirements, then the definition of employer association must require some form of commonality and control, otherwise part of the statute would be superfluous. Thoughts?

Can (or is) a church plan with multiple employers also be considered a Multiple Employer Plan (MEP) or a Multiemployer plan? Thanks for any help.

Hi, all: We have a plan that spun off from a MEP and 2013 is their first year to file. My colleague asked me if there is any data she needs to obtain from the MEP that could affect our 2013 work for it. I could not answer her with certainty, so I thought I'd cast a net out for input. Do we need Top Heavy data from the MEP or no? Any other think-outside-the-box-holy-cow-I-wish-I-knew-that things to keep in mind? It appears the current adoption agreement that was drafted retained the MEP's efective date and lists the current restatement date and Plan No. 001 One more tid-bit of info, it seems they made no new contributions to the plan for 2013. Advanced thanks for anyone's input!