Merger of plan with no assets or participants

[Guest Bud]

Can a plan that has not been terminated, but has no participants and no assets be merged with another plan?

One of our subs has a plan that is separate from the parent’s plan, everyone in the sub has separated from service and will be taking distributions. Only one participant remaining and will be gone soon.

The sub plan was frozen and everyone in the sub plan was eligible under the parent plan. Therefore, the parent plan was a successor plan and, because 100% of the sub plan participants were eligible to participate in the parent plan, the 2% exception did not apply.

Thanks for your help.