Timing of restating a money purchase plan to a ps plan-

[pbarrett]

We have a one-man mp plan we want to restate to a ps plan. Originally, we thought we would make the effective date 1/1/02 for the restatement and have the assets renamed as of 12/31/01 so we could do a final 5500. Now we are thinking we can't have the one-day lag period. If we restate and retitled the assets effective 1/1/02, would we have to do two 5500s for the mp plan? One for '01 and a final for the one day in '02? I think I am just confusing myself. This can't be that complicated. Help!

[david rigby]

I think that is correct. Merging the plans on 1/1/2002 will give you a one day plan year, requiring a 5500. But so what? That gives you more time to get the paperwork done.