Merging a Money Purchase

[FJR]

With the mad rush of merging MPP's with existing Profit Sharing plans, we were looking for some clarification.

Our stance is not to step up the vesting once the MP is merged with the PS Plan and to track as a Money Purchase source for J&S reasons. We use a prototype, the question is when someone is paid out of the PS plan and has a non-vested interest in the MP source, what happens to the forfeitures? I didn't see anything in the document that references that. Does it become a forfeiture like the Profit Sharing? Follow the what the document says about non-elective contribution forf?

Thanks

[Archimage]

I think it should be treated just as your forfeitures are treated for profit sharing forfeitures. Since you are not making anymore MPP contributions, you obviously can't use it for that source anymore.