MPP Plans -- Mergers

[wmyer]

I'm kind of continuing the discussion that started in thread 10608, but am starting a new thread because the following issues did not come up. I'd like to hear other people's input on the questions below. When merging the MPP plan into a profit-sharing plan,

• do you need to requalify the MPP plan for GUST first?
  
• do all the contributions need to be made by 12/31/2001 if you want to merge the plans 12/31/2001?
  
• if you don't have a profit-sharing plan, can you just amend the MPP to a profit-sharing plan, or do you need to start a profit-sharing plan so that you can merge them?
  

[Earl]

I have been wondering these same things. This is my take on your questions:

1. You have to update the plan for all laws in effect as of the plan's termination. So for GUST, yes. But I think the series of model amendments is fine.

2. I don't know why the plan cannot have a receivable asset. I have seen people talking about making the deposit by 12/31/00. I can't think of any reason for this. Plan benefits are equal before and after the transfer. Timing of the contribution is a separate issue, seems to me (412).

3. A Profit Sharing prototype I used to use had a provision under the effective date section that stated, "this is a subsitituiton of a Money purchase Plan originally est.:_____". Seems like it got approved once.... Never saw it questioned, have shown it to a couple IRS auditors, seems fine to me. And I have continued with the same plan number (001) after changing name to abc, co., inc., PS Plan from abc, co., inc., MP Plan.

What do you say?