Final 5500 for merged plan

[Guest CTYSON]

We are merging many money purchase plans into profit sharing/401(k) plans for the 2002 years since both plans aren't needed to maximize deductions in 2002.

Question: If the plans are merged effective 12/31/2001, can we file a final 5500 for the money purchase plan for the year ended 12/31/2001 OR do we need to wait until the assets are physically transferred (re-titled) to the profit sharing/401(k) plan and do a final return with a year beginning 1/1/2002 and ending as of the date of the last asset transfer?

Thanks for your help!

[rcline46]

Final for 12/31/2001. At merger the assets are deemed moved even if not yet re-registered. Note that the plan does not exist after the merger, so neither does the trust.

[david rigby]

I'm not sure but have been told that merger at 12/31/2001 is preferable to 1/1/2002. The latter gives you a one-day plan year.