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Merging/Terminating Money Purchase plan


MarZDoates

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Posted

I have a Money Purchase Plan and a Profit Sharing Plan. With the new EGTRRA maximums in the Profit Sharing Plan in 2002, we want to dump the Money Purchase Plan. Is it better to merge the two plans or terminate the Money Purchase and roll proceeds to the Profit Sharing?

If merging is the better way to go, what steps do I need to take? (i.e. notification to employees, amendment, final 5500 etc.)I have been unable to find clear instructions on merging in my research.

Thank you.

QPA, QKA

Posted

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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